Volkswagen has been pushed into operating loss over the mounting cost of the emissions scandal.
In its first results since new of the scandal broke, VW reported an operating loss of €3.48bn (£2.52bn) for the third quarter of 2015, and a pre-tax loss of €2.52bn (£.182bn).
The accounts also showed the German automobile manufacturer set aside a total of €6.7bn (£4.8bn) to cover future issues in regard to the scandal, such as possible class action lawsuits from customers and investors, criminal and civil charges in a number of countries, and product recall and repair.
VW vehicle sales fell 3.7% and production declined 11.6% in the three months to the end of September when compared with the previous year. VW said that overall profits for the year were expected to be “down significantly” because of the scandal, but that sales revenue was on target for 4% year-on-year growth.
Matthias Mueller, VW’s chief executive and chairman of the board of Management, said:
“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. We will do everything in our power to win back the trust we have lost.”
Immediately following the publication of results, shares in VW rose 3.2%.