Volkswagen has posted its first quarterly loss in at least 15 years. As Tim Graham reports it’s been slammed by costs related to its rigging of diesel emissions tests and lowers profit outlook.
Emissions scandal drives VW into loss
There’s no denying 2015 has been a tough year for Volkswagen.
The emissions scandal has forced out its CEO, wiped more than a quarter off its stockmarket value, and tarnished its brand.
Now, the carmaker has posted its first quarterly loss in at least 15 years.
Despite that, the company’s shares rose on Germany’s DAX index.
Robert Halver is with Baader Bank.
(SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING:
“VW shares gained for two reasons: first, we now know that they set aside 6.7 billion euros. What’s much more important, though, is that VW is saying its 2015 outlook is unchanged as far as revenue and profit goes. That’s enough to make the share go up.”
Volkswagen’s third-quarter operating loss was 3.48 billion euros.
The company’s new CEO says his strategy is to focus on profitability.
But it isn’t the only carmaker who should be worried, says CMC’s Jasper Lawler.
(SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, JASPER LAWLER, SAYING:
“The whole sector is struggling a little bit. Just largely because of the slowdown in China, which has been a booming market for them. So they’re projecting that full-year revenues are going to match the previous years so really no sales growth, as well as the scandal on top.”
Volkswagen has so far set aside 6.7 billion euros to pay for the scandal.
That’s expected to rise.
But for now, the regulatory fallout is only just beginning.
The European Parliament the latest to vote in favour of tough new vehicle testing,
and early results of investigations into what went wrong.