VW takes new US$3 billion hit over diesel emissions scandal

Volkswagen said the extra provisions would be reflected in its third-quarter operating results, which are due to be published on Oct 27.

vw2BERLIN: Volkswagen added provisions of around 2.5 billion euros (US$3 billion) on Friday to the mounting total from its diesel emissions scandal, which has already cost the company around 20 billion euros.

“The reason is an increase in provisions relating to the buyback/retrofit program for 2.0l TDI vehicles, which is part of the settlements in North America that is proving to be far more technically complex and time consuming,” it said in a statement.

Its shares dropped after the statement and were down 3.1 percent by 0757 GMT (3.57 a.m. ET), at the bottom of the German blue-chip DAX index, which was up 0.2%.

Volkswagen has recalled around 11 million vehicles worldwide since admitting two years ago to manipulating emissions tests in the United States. About 8.5 million of those are in Europe.

“You have to ask if this is a bottomless pit,” said one Frankfurt-based trader.

Volkswagen said the extra provisions would be reflected in its third-quarter operating results, which are due to be published on Oct 27.

Porsche SE, which owns a 30.8% stake in Volkswagen, said the new provisions would also affect its results, but stuck to a wide range for its expected 2017 post-tax profit of between 2.1 and 3.1 billion euros.

Munich prosecutors arrested a former board member of Porsche in connection with the emissions scandal at Audi, a person familiar with the matter said on Thursday.

Audi admitted in November 2015, two months after parent Volkswagen’s diesel emissions scandal broke, that its 3.0 liter V6 diesel engines were fitted with an auxiliary control device deemed illegal in the United States.

READ ALSO  Jalaludin bakal akhiri zaman duda

Comments

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.

Comments



Bahagian pelancongan nusantara merupakan salah satu sektor yang utama dalam ekonomi negara. Sehingga kini, seksyen pelancongan merupakan sektor kelima terbesar negara selepas sektor perkhidmatan kewangan, kelapa sawit, borong dan runcit, gas dan tenaga, dan petroleum dengan memberikan sebanyak RM36.9 bilion kepada Keluaran Negara Kasar (KNK).

Namun begitu pada peringkat awal selepas pasca kemerdekaan Malaysia, kerajaan tidak memberi penekanan kepada sektor pelancongan. Kerajaan pada ketika itu lebih memberi tumpuan kepada pembangunan infrastruktur negara dan melawan ancaman communism. Selain itu, faktor ancaman dari luar seperti konfrantasi dengan negara jiran turut menjejaskan tujuan kerajaan pada ketika itu. Ia sekaligus melambatkan pekembangan sektor pelancongan di Malaysia.

Pada era tahun 60-an, sektor pelancongan masih belum mewujudkan peranan yang utama terhadap perkembangan ekonomi nusantara. Kerajaan pada masa itu memberi tumpuan kepada sektor hasil bumi seperti bijih timah dan getah. Sektor hasil bumi tersebut telah memberikan sebanyak 45% kepada keluaran Negara kasar (KNK) pada tahun 70-an.