Currently reading: Volkswagen’s diesel emissions scandal bill runs to €30bn
Group swallows up €1bn Dieselgate legal charge to meet first quarter operating profit forecasts
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1 min read
2 May 2019

Volkswagen has met its first-quarter operating profit forecasts for 2019, despite taking a €1 billion hit due to legal costs related to the 'Dieselgate' diesel emissions scandal.

The company set aside the amount to cover additional legal risks from emissions cheating findings, with cases involving investors and customers still ongoing since the revelations surfaced in 2015. 

The firm claims the provision is not related to charges filed against former CEO Martin Winterkorn and four other executives, who are accused of fraud for not reporting the systematic cheating. It brings the total costs from the scandal to around €30 billion, according to reports.

Despite this, increasing sales of the firm’s SUVs and an extensive cost-cutting programme has allowed Volkswagen to forecast revenue growth of 5% this year, and a group operating return on sales between 6.5 and 7.5%. 

Earnings before interest and taxes are at €3.9 billion, down on previous years but in line with analysts' expectations. Bentley is also reported to have reversed its loss making record. However, passenger car sales fell 3% to 2.55 million vehicles during the quarter, with supply bottlenecks – caused by having to meet the stricter WLTP emissions regulations – still having a knock-on effect. 

Read more:

VW dieselgate woes continue after German court decision

Dieselgate: VW admits to 28,600 UK complaints after software fix

Former Volkswagen CEO charged with Dieselgate fraud

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6

2 May 2019
If VAG were not so huge and integral to the German economy they would have been taken over or sold off by now.

We should never forget the way they ripped off the public and wilfully polluted our planet.

I managed to avoid slagging off their boring cars this time...

2 May 2019
Thekrankis wrote:

If VAG were not so huge and integral to the German economy they would have been taken over or sold off by now. We should never forget the way they ripped off the public and wilfully polluted our planet. I managed to avoid slagging off their boring cars this time...

 

And of course, VW were the only company guilty of breaking the rules?  Not many companies came out of this whole shambles smelling of roses, some more than others, but the fundamental issue remains that governments were to blame for this - setting targets without a waterright regulatory regime around them is always going to lead companies to find ways around them.  But it's easier for the uninformed and ignorant to blame one company than admit the whole thing was broken from top to bottom.

And I have little doubt that WLTP has only gone so far to change that....

2 May 2019

... I won't hear a bad word said about them.

(fingers in ears) La..La..La..La..La..La

2 May 2019
That is peanuts in comparison to the money they made out of that worldwide fraud.

2 May 2019

..the genuine flower vase for the beetle dashboard is only £19.99 from a prominent online supplier.

 

 

 

 

2 May 2019

But not including the damage done to other manufacturers.

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