Volkswagen Reports $3.84 Billion Loss Caused By Diesel Scandal

Posted: Oct 28 2015, 4:24am CDT | by , in News | Latest Business News

 

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Volkswagen Reports $3.84 Billion Loss Caused by Diesel Scandal

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The first quarterly loss for Volkswagen in 15 years did not stop investors to drive up shares.

Volkswagen is hurting badly. The German car maker has reported for the first time in 15 years a quarterly loss. The Diesel emissions scandal has driven Volkswagen in the red last quarter. According to the Volkswagen earnings release today, the company has an operating loss of $3.84 billion (3.5 billion Euro).

The negative result is caused by the 6.7 billion the company put a side for the Diesel scandal. The negative results did not stop investors on jumping on the Volkswagen stock and drove the stock up over 3% after the announcement.

"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", said Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Wednesday.

There is hope that Volkswagen is surviving the self inflicted wound. The emission cheating scandal will cost the company billions. The brand did not suffer as much as thought and Germans are already ordering more Volkswagen Diesel cars despite the scandal as reported yesterday.

The Group's operating profit and sales revenue exclude the activities of the Chinese joint ventures, which are accounted for in the financial result using the equity method. The share of operating profit attributable to the Chinese joint ventures to the end of September remained level at EUR 3.8 billion (EUR 3.9 billion).

"The Volkswagen Group has very solid and robust liquidity resources. This will help us manage the challenging situation caused by the financial impact of the diesel issue", said Chief Financial Officer Frank Witter.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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