Volkswagen Issues Profit Warning Over Cost of Diesel Repairs
- 7 years ago
Volkswagen Issues Profit Warning Over Cost of Diesel Repairs
Diesel cars accounted for 46 percent of new car registrations in western Europe during the first half of 2017, down from
50 percent in the same period a year earlier, the European Automobile Manufacturers Association said on Thursday.
FRANKFURT — Volkswagen warned on Friday that its profit in the third quarter would be hit by unexpectedly high costs for repairing
diesel cars in the United States equipped with emissions cheating software, part of its efforts to resolve the scandal.
Diesel has long been one of Volkswagen’s strong suits,
and its decline may help explain a drop in the company’s market share in the European Union, to 25.2 percent in August from 25.9 percent a year earlier.
The carmaker said in a statement that it would set aside an additional 2.5 billion euros, or
$2.9 billion, to cover extra costs to comply with a legal settlement in the United States.
Sales of diesel cars, an area where Volkswagen was once seen as a technology leader, have been dropping in Europe
because buyers fear the health hazards, while numerous cities are planning to ban or restrict diesels in urban centers.
Carmakers sold about 150,000 fewer diesel cars during the first six months of the year than they did in the first half of 2016.
Volkswagen has agreed to pay nearly $23 billion to settle a class-action suit by owners, as well as civil
and criminal proceedings by the United States government and individual states.
Diesel cars accounted for 46 percent of new car registrations in western Europe during the first half of 2017, down from
50 percent in the same period a year earlier, the European Automobile Manufacturers Association said on Thursday.
FRANKFURT — Volkswagen warned on Friday that its profit in the third quarter would be hit by unexpectedly high costs for repairing
diesel cars in the United States equipped with emissions cheating software, part of its efforts to resolve the scandal.
Diesel has long been one of Volkswagen’s strong suits,
and its decline may help explain a drop in the company’s market share in the European Union, to 25.2 percent in August from 25.9 percent a year earlier.
The carmaker said in a statement that it would set aside an additional 2.5 billion euros, or
$2.9 billion, to cover extra costs to comply with a legal settlement in the United States.
Sales of diesel cars, an area where Volkswagen was once seen as a technology leader, have been dropping in Europe
because buyers fear the health hazards, while numerous cities are planning to ban or restrict diesels in urban centers.
Carmakers sold about 150,000 fewer diesel cars during the first six months of the year than they did in the first half of 2016.
Volkswagen has agreed to pay nearly $23 billion to settle a class-action suit by owners, as well as civil
and criminal proceedings by the United States government and individual states.