VW Books Deep Loss, Massive Provisions in Wake of Engine-Rigging Scandal
Embattled German carmaker Volkswagen said Friday it is setting aside 16.2 billion euros ($18.2 billion) in provisions to cover the anticipated costs of the global engine-rigging scandal it is engulfed in.
The massive charge pushed the auto giant deeply into the red in its 2015 accounts, where it booked a bottom-line loss of 1.582 billion euros, compared with a profit of 10.84 billion euros a year earlier, VW said in a statement.
"The emissions issue significantly impacted the Volkswagen group's business in the 2015 reporting period," the statement said.
At an underlying or operating level, the group booked a loss of 4.069 billion euros in 2015 compared with a profit of 12.697 billion euros a year earlier.
Deliveries to customers declined to 9.931 million vehicles worldwide from 10.137 million vehicles in 2014.
But revenues climbed by 5.4 percent to 213.3 billion euros, propelled by positive exchange rate effects and the favorable performance of its financial services division.
Looking ahead to the current year, however, revenues were projected to decline by "as much as five percent, depending on the economic conditions -- particularly in South America and Russia -- and the exchange rate developments and in light of the emissions issue," VW said.
Source: Agence France Presse
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