VW slumps to first quarterly loss in at least 15 years

Volkswagen has posted its first quarterly loss in at least 15 years, slammed by costs related to its rigging of diesel emissions tests. The German carmaker also lowered its profit outlook as it reported a third-quarter operating loss of €3.48 billion ($3.84bn). VW set aside €6.7 billion in the July-September period to cover costs related to the manipulations affecting 11 million cars globally, up slightly from the €6.5 billion announced a week after the cheating became public on Sept.

The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear.

New VW boss Matthias Mueller

As a result, the German group said it now expected its operating profit to drop “significantly below” last year’s record €12.7 billion. Excluding costs of the scandal, the carmaker still expects its group operating margin to come in between 5.5 and 6.5 percent this year, after 6.3 percent in 2014. VW may need to set aside more money for measures to stabilise sales if deliveries take a hit from the scandal, Chief Executive Matthias Mueller has said. Steps could include discounts on new cars if owners turn in old models as well as cheap loans and incentives to dealers to buy back older cars.

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