VW, Setting Aside $18 Billion for Diesel Scandal Costs, Reports Record Loss

Several Affected Models in Volkswagen’s Lineup

After dealing with an emissions related scandal last fall, Volkswagen is under investigation both in Europe and America. After independent testing in the United States, several Volkswagen models were found to have been programmed to artificially lower emissions output when the car’s computer sensed it was being tested. A United States Justice Department investigation spurred a similar investigation by Germany’s Transport Ministry and likely recalls, lawsuits, and fines will take place both in the US and in Europe. As a result VW has set aside $18 Billion dollars in order to accommodate for these punishing measures. The most recent financial release from the company shows they lost more than $6.2 Billion dollars last year after word broke of the scandal. 2016 financial data has yet to be released but VW’s chief executive, Matthais Muller, stated the crisis “is having a huge impact of Volkswagen’s financial position,” hinting at already expected losses in the first quarter of 2016.

 

Source: NY Times Auto

 

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