Volkwagen’s latest bad news is a Friday profit warning that sent the company’s share price tumbling. The German carmaker has barely been able to keep up with fixing cars fitted with the notorious software that led to the Dieselgate scandal.
VW said it would need to set aside more money to cover the cost of repairs and settlements in the US, around another €2.5 billion ($2.95 billion). The additional sum brings the total money the company has set aside due to the Dieselgate scandal to €25.1 billion. According to experts, it may rise further, going as high as €35 billion.
The Wolfsburg-based company has been battling regulators, dealers and angry car owners around the world since environmental authorities in California broke news of the systematic cheating in September 2015. Last year VW agreed to fix or buy back cars in the US that it had modified to mislead environmental testing equipment.