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VW Doubles Provisions for Cheating Scandal to $18.2 Billion

  • Findings of internal inquiry delayed until fourth quarter
  • VW CEO expects to weather the crisis without cutting jobs
Bloomberg business news

VW Slashes Dividend as Diesel Emissions Provisions Double

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Volkswagen AG more than doubled provisions to pay for the emissions-cheating scandal, leading to the biggest loss in the German automaker’s history while giving it a path toward assessing the full financial impact of the crisis.

VW set aside 16.2 billion euros ($18.2 billion) to cover the costs of the cheating, up from the previous amount of 6.7 billion euros, Europe’s largest carmaker said in a statement on Friday. The manufacturer cut its annual dividend 97 percent to 0.17 euros per preferred share, the lowest since at least 2000. The stock, which closed down 1.3 percent for its first decline in a week, has surged 45 percent since hitting a post-scandal low in October.