VW sets aside 16.4 billion euros for emissions scandal, sources say

Volkswagen has set aside 16.4 billion euros (18.5 billion dollars) to cover costs associated with the company's diesel emissions scandal, sources told dpa Thursday.

The cash reserve is an increase of almost 10 billion euros over the previous estimate the German carmaker had established for costs arising from the diesel emissions cheating revealed last year.

Europe's largest carmaker is heading toward the biggest annual loss in the history of the company.

In 1993, it registered a net loss 1.94 billion German marks, or around 1 billion euros. Earlier losses in the 1980s and '70s were far smaller.

The company earned 11 billion euros in 2014. Details of its 2015 results have not been formally announced, but VW recently said its earnings before interest and taxes would be roughly at the 2014 level, before deducting the setback resulting from the diesel emissions scandal.

Last update: Fri, 22/04/2016 - 12:04
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