Economy

Volkswagen to take €2.5bn hit from emissions scandal

Volkswagen to take €2.5bn hit from emissions scandal

The company has recalled around 11 million vehicles worldwide since admitting to cheating emissions tests.

Frankfurt am Main, Sept 28 (AFP) German prosecutors today said they had arrested a second employee of luxury carmaker Audi as part of a probe into parent company Volkswagen's emissions cheating scandal.

The company said the extra charge is because engines are proving "far more technically complex and time consuming" to adapt.

Volkswagen expects to take a €2.5 billion (£2.2bn) hit as a result of the diesel emissions scandal.

On Wednesday, police in Munich arrested former Volkswagen engineer Wolfgang Hatz in connection with the case.

More news: Finally, Meghan Markle and Prince Harry make their first public appearance

Up until the most recent charge, VW has set aside €22.6billion euros to cover the costs of fines against them and for vehicle retrofits.

Volkswagen says it expects to take charges of about Dollars 2.9 billion in the third quarter to cover the costs of buying back and retrofitting diesel cars in North America. The scandal has also raised questions and sparked investigations into emissions cheating at numerous other automakers, and has all but ruined diesel's reputation in the passenger auto market around the world. While most of the cars in Europe have been repaired, tougher emissions and fuel economy rules in the USA have made the job more hard, the company said. The company has been facing a shift in automotive technology and is planning to invest about 20 billion euros by 2030 to develop electric vehicles and another 50 billion euros to purchase the batteries needed to power the cars.

The reason for the latest charge is complications in fixing these engines which were harder to do than first expected and relates to the program to buy back or fix up 475,000 2.0-litre diesel cars.

The additional provisions will hit operating results in its third-quarter report, due October 27, the Wolfsburg, Germany-based company said Friday in a statement.

Three months ago, the U.S. Environmental Protection Agency approved planned fixes to Volkswagen's 2-liter engine diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle Convertible and Audi A3 models.


  • Google clears deck for huge antitrust fight

    Google clears deck for huge antitrust fight

    In a statement issued immediately after the ruling, Google said it "respectfully" disagreed and was considering whether to appeal. Google presented its plans to the commission at the end of August but did not make them public until Wednesday.
    Mattis arrives in Afghanistan hours after ISIS-claimed attack rocks Kabul

    Mattis arrives in Afghanistan hours after ISIS-claimed attack rocks Kabul

    Zabihullah Mujahid, Taliban spokesman , claimed responsibility for the attack on his official Twitter account. The assistance that USA forces will be providing to Afghan forces will also be discussed.
    Ivanka Trump to visit Detroit on Tuesday to promote STEM education

    Ivanka Trump to visit Detroit on Tuesday to promote STEM education

    Fewer than half of US high schools offer computer programming and close to 40 percent don't teach physics, the White House said. It also establishes a goal of $200 million in spending each year to achieve the improvement in STEM education.
  • Google Pixel phones on sale at Woot

    Google Pixel phones on sale at Woot

    Essentially, this is just a smaller version of the Google Home , which is a multimedia speaker and home AI. With this featue, users will be able to squeeze the phone's frame to trigger Google Assistant.
    Lansing singer makes it through blind audition on

    Lansing singer makes it through blind audition on "The Voice"

    Finally, 26-year-old Native American Brooke Simpson - who started singing with her parents when she was just seven took the stage. The 26-year-old from Lansing, Michigan, only got on chair turn and it was from Hudson, so he joins her team by default.
    North Korea: Diplomacy Is A Dead End

    North Korea: Diplomacy Is A Dead End

    If fails to do so then Congress has 60 days to decide whether to reimpose sanctions waived under the deal. It's functioning", Mogherini told the journalists at the United Nations .
  • Warner hundred powers Australia to 334-5 in 4th ODI vs India

    Warner hundred powers Australia to 334-5 in 4th ODI vs India

    Beating the opponents with a good score and run rate, men in blue enhanced India's position in the ODI rankings to first place. Total attention in this match India vs Australia goes to Ben Stokes from the Bristol, they still have two matches to play.

    Crude prices react to concerns of referendum in Kurdistan

    Over the last month, gasoline demand averaged over 9.4 million barrels per day, up by 0.6% from the same period a year ago . That follows years of western markets and OPEC each having a leading role on the price and consumption of oil.
    Olympics: South Korea banks federation boosts 2018 ticket sales

    Olympics: South Korea banks federation boosts 2018 ticket sales

    The game is one in a series of six the Canadians and Americans will play prior to February's Winter Games in Pyeongchang, South Korea.
  • Bombardier dispute puts Boeing's defence contracts at risk, says United Kingdom  defence sec

    Bombardier dispute puts Boeing's defence contracts at risk, says United Kingdom defence sec

    Because Boeing did not compete at Delta and because Boeing years ago abandoned the market the C-Series serves, there is no harm. Department of Commerce has proposed a 219 per cent duty on Bombardier's CSeries jets following a complaint filed by Boeing .
    U.S.  bombers fly off North Korean coast in show of force

    U.S. bombers fly off North Korean coast in show of force

    Secretary-General Antonio Guterres before a meeting Saturday in NY . North Korean Foreign Minister Ri Yong Ho (left) talks with U.N.
    Oil price hits highest level since July 2015

    Oil price hits highest level since July 2015

    The wellhead was uncapped, and oil gushed higher overnight with Brent rising almost four percent and WTI three percent. Kuwait's oil minister Issam Almarzooq said that global crude and refined product stockpiles have "massively drained".