Volkswagen diesel scandal still hitting profits

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Volkswagen carsImage copyright
EPA

Volkswagen’s diesel emissions scandal has continued to hit its profits, according to the latest figures from the carmaker.

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.

However, once additional provisions in connection with the diesel issue were accounted for, operating profit was €1.7bn, 48% down on last year.

VW said there was “a lot to be done”.

However, chief executive Matthias Mueller said: “Our operating business is strong, our financial position robust.”

‘Financial cushion’

VW said the diesel scandal had cost the carmaker about €14.5bn so far this year.

However, Frank Witter, the VW management board member responsible for finance, said the firm had “an adequate financial cushion”, although the diesel issue was nowhere near an end.

“Although there is still a lot to be done, we can definitely be satisfied with what we have achieved so far,” he added.

VW is facing tens of billions of pounds in compensation and fines after admitting to cheating on diesel emissions tests.

The carmaker said that apart from the emissions scandal, other challenges included the economic situation, intense competition in the market and exchange rate volatility.

Despite “persistently challenging market conditions”, however, VW said it expected that deliveries of new cars to customers in 2017 would “moderately exceed the prior-year volume”.

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