VW's Diesel Woes Reach $30 Billion After Surprise U.S. Hit
- Problems with U.S. recall will add 2.5 billion euros to costs
- VW remains ‘some distance’ from emerging from diesel crisis
Hoses connect laboratory emission testing equipment to a Volkswagen AG Golf TDI emissions certification vehicle waiting to be tested in California.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Volkswagen AG will take a surprise charge of about 2.5 billion euros ($3 billion) in the third quarter as plans to buy back or retrofit tainted U.S. diesel cars proves more complex than expected, bringing total damages from the two-year-old scandal to over 25 billion euros.
The charge will wipe out more than half of Volkswagen’s projected 4.45 billion euros in earnings for the period, according to three analyst estimates compiled by Bloomberg. The additional provisions will hit operating results in the quarterly report due Oct. 27, the Wolfsburg, Germany-based company said Friday in a statement.