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Volkswagen takes 2.2bn euros emissions charge

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Update: 2016-07-20 11:57:08
Volkswagen takes 2.2bn euros emissions charge Photo Courtesy: usatoday.com

DHAKA: German carmaker Volkswagen has set aside another €2.2bn in the first six months of the year in relation to its emissions scandal.

Excluding the charge and other one-off items, the firm said its operating profit for the half-year until the end of June was up 7% to €7.5bn, reports the BBC.

The better-than-expected performance lifted the firm’s shares by 4.6%

VW admitted last year to installing illegal software disguising the level of emissions from its diesel cars.

The so called ‘defeat devices’, which deactivated pollution controls, were placed in 11 million cars worldwide.

Europe’s biggest car manufacturer said it had seen an improvement in European car markets and the return of orders from corporate fleets.

‘The operating result for the Volkswagen group before special items is significantly higher than market expectations for the first half of 2016,’ VW said in a statement.

The €2.2bn charge relates mainly ‘to further legal risks predominately arising in North America,’ the company said.

VW has already set aside €16.2bn to pay for technical upgrades for cars that break clean air standards, buying back cars, and legal costs.

And it says it still expects 2016 sales revenue to fall by up to 5% compared to 2015.

BDST: 2151 HRS, JUL 20, 2016
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