VW still counting the cost

Volkswagen may have underestimated the financial impact of the emissions scandal, according to credit rating agency Standard & Poor’s.

It has set aside €6.7bn to cover costs, but Standard & Poor’s believes the company’s decision to postpone publishing it’s 2015 results is because it is now revising that figure upwards.

VW was due to publish its 2015 results on 10 March, but announced earlier this month that it needed more time.

Speaking to the The Telegraph, S&P said, ‘There is no immediate rating impact from these delays, but they do highlight to us the difficulties that VW faces in trying to quantify the direct financial costs that will likely arise from its emissions manipulation.

‘Uncertainties remain also on the sizing of compensation payments VW could offer to end-users in several jurisdictions. VW has not publicly announced when it will publish its 2015 results, though we assume it will be in the coming weeks.

‘At that point, if VW does take additional charges, there may be improved visibility of the potential costs and liabilities faced by VW.’

The scandal broke last September, when it was discovered that VW had fitted emissions cheat devices to around 500,000 diesel cars.

VW has since admitted that as many as 11m cars could be affected.