AFTER 15 YEARS VOLKSWAGEN MAKES A LOSS DUE TO THE DIESELGATE SCANDAL

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A damper on Volkswagen, which has made a net loss of 1.67 billion euros and an operating loss of 3.48 billion in the third quarter of the financial year. According to Bloomberg, this is the first loss in more than 15 years for the German automaker. The Dieselgate scandal has been determinant; in view of the possible operational consequences, the company set aside about 6.7 billion euros. The CEO Matthias Mueller explained that at present “the initial impact of the current situation is becoming clear” and that “we will do everything in our power to gain back lost trust”.

In the first nine months, the Wolfsburg group shows a profit of 3.99 billion euros, with a decrease of 54% with respect to the same period last year. There are negative trends in sales. In the third quarter, sales experienced a decline of 3.7% to 2.35 million, while production shows a decline of 11.6% to 2.12 million vehicles. “On the one hand, the results show the strength of the core business, while on the other hand, it reveals the initial impact” of the scandal with diesel engines. “We will do everything in our power to gain back lost trust” says the new CEO, Matthias Mueller. He stresses also that “we have a sound and firm level of liquidity which will help us to handle the financial impact of the Dieselgate scandal”.

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