Volkswagen AG Increases Provisions on Modifying Diesel Vehicles in U.S., Shares Slip
Sep, 29th 08:57
Shares of Volkswagen AG tumbled on Friday after the German carmaker warned that its third-quarter operating result would be affected by higher costs associated with the repurchase of diesel cars in North America.
Volkswagen’s equities shed more than 2.3 percent in European trading session to trade at 140.30 euro per share following the announcement that the company added provisions of around 2.5 billion euros ($2.94 billion) to the already amount of around 20 billion euros spending on its diesel emissions scandal.
The German car maker said that settlements in North America proved to be “far more technically complex and time consuming” than expected which led to the increase in provisions as the company has to bear more costs from buyback and retrofitting programs for models fitted with its 2.01 TDI engine.
Volkswagen is scheduled to publish third-quarter results on October 27.
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