VW diesel scandal still hits profits in Q3
Latest figures from Volkswagen have demonstrated that the diesel emission scandal is still prevalent in affecting profits, despite the carmaker disclosing promising sales in the third quarter.
Third-quarter operating profit before costs related to the scandal was €4.3bn (£3.8bn), an increase of 15% on the same period in 2016. Yet, once additional provisions associated with the diesel issue were accounted for, operating profit was €1.7bn, 48% down on last year.
Volkswagen’s chief executive, Matthias Mueller commented, ‘Our operating business is strong, our financial position robust.’
The carmaker had reported that the diesel scandal had cost the carmaker about €14.5bn so far this year. Despite this, Frank Witter, the VW management board member responsible for finance, said the firm had ‘an adequate financial cushion’, although the diesel issue was far from over.
‘Although there is still a lot to be done, we can definitely be satisfied with what we have achieved so far,’ he added.
As a result of the scandal, which found Volkswagen admitting to cheating on diesel and emission tests, VW will have to pay tens of billions of pounds in compensation. On top of this, they also face economical challenges, heightened competition in the market and exchange rate volatility.
VW said it expected that deliveries of new cars to customers in 2017 would ‘moderately exceed the prior-year volume’.