Skip to content
Subscriber Only

VW Keeps Lid on Diesel Scandal Fallout as Car Brand Margin Rises

  • VW brand widened return to 3% of sales as profit rose
  • Cheating scandal caused 6.7 billion euros in special costs
Video player cover image

VW Diesel Dupe Hits Q3 Profits Hard

Updated on

Volkswagen AG contained the initial financial fallout from cheating on emissions tests as its namesake car brand lifted third-quarter margins and provisions to cover recalls rose only moderately.

The VW brand, which faces the biggest impact from years of rigging diesel engines to pass emissions tests, widened its return to 3 percent of sales in the third quarter from 2.8 percent a year ago as operating profit jumped 17 percent. Some 6.7 billion euros ($7.4 billion) in special costs linked to the cheating scandal pushed Wolfsburg, Germany-based Volkswagen to a 3.48 billion-euro operating loss, its first quarterly deficit in at least 15 years.