VW more than twice the expense of emissions to € 16,2 billion

VW logoImage copyrightReuters
Volkswagen has more than doubled its provisions for scandal diesel emissions by up to € 16,2 billion (£ 12.6 billion).

Last year, he told shareholders that € 6,7 billion was allocated for potential costs or recall.

The increased amount includes the cost of fixing cars that violate the norms of air pollution, buying vehicles and legal expenses.

This step, like the German automakers have agreed to withdraw the 630,000 diesel vehicles to configure the software to ensure the engine.

German Transport Minister Alexander Dobrindt said Mercedes Benz, Opel and the Porsche, and Volkswagen and Audi will adjust the parameters, elevated levels of emissions such as nitrogen dioxide in some diesel vehicles.

Transport Secretary Patrick McLoughlin said that he would ask the producers if they offer a similar fix for car owners in the UK.

Daimler shares fell 4.6% in Frankfurt after the owner of Mercedes said he began an internal investigation of its testing at the request of the US Department of Justice of diesel fuel.

He said the net profit for the first quarter fell by a third to € 1,4 billion to contain costs associated with the launch of the new E-Class series. The more-than-expected decline occurred despite a 2% increase in revenue to € 35 billion, as sales rose 7% to 683.885 vehicles.

Mercedes carImage copyrightAP
VW Executive Officer Matthias Mueller said he could not put a figure on the total cost of the scandal emissions to a final agreement was not reached with the US authorities.

the company also can not release preliminary findings from the study are not ordered Jones Day law firm to reach an agreement, he said.

VW still face fines US Department of Justice as part of the expected settlement of civil and possible criminal charges.

On Thursday, the US Supreme Court revealed details of the deal between VW and the US Department of Justice for more than 500,000 of its American owners of diesel vehicles affected by the cheating emissions.

The deal will include the purchase of shares and "substantial" compensation to owners of mostly two-liter vehicles.

US District Court Judge Charles Breyer said he expected an agreement between VW and controls a total area of about 90 000 large cars and SUVs, to decide "promptly". The final details of the proposed package will be announced in June.



VW losses

The increase in appropriations emissions VW pushed to an annual loss before taxes in the amount of € 1,3 billion compared to a profit of € 14.7 billion last year.

VW expected volume of group sales to fall 5% in 2016.

Chief Financial Officer Frank Witter said: "We are again working in extremely difficult conditions in which global demand for new vehicles is reduced, exchange rates and interest rates remain extremely volatile and competition in many of our markets is enhanced."

VW shares closed down 1.7% in Frankfurt on Friday, and more than 40% lower than at this time last year.

Evercore ISI analysts said in a note: "Investors should be exempted from the fact that VW has put a number on the financial risk associated with the vast majority of its diesel issues ... management should now be able to deal with the turnover planned VW brand more actively.

NordLB analyst Frank Schwope, who has a "hold" rating on the shares of VW, said: "The crisis in Wolfsburg is far from over yet."