VW emissions scandal – Volkswagen reports losses in third quarter of 2015

Tuesday, October 18th, 2016 - autos, cars, motoring, news

Source : VW emissions scandal – Volkswagen reports losses in third quarter of 2015

The rising costs of its emissions scandal pushes Volkswagen into the red from the third quarter of 2015, however the firm features a plan to fight back

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Volkswagen has reported a loss for the third quarter of 2015, as the costs of its emissions scandal continue to rise.

As a result of the €6.7bn (£4.8bn) the German supplier received a has set aside to cover the costs of rectifying vehicles fitted with its so-called ‘defeat device’, Volkswagen has reported an operating loss of €3.48bn for the third quarter of This specific year, as well was a pre-tax loss of €2.52bn.

Despite the news, shares in Volkswagen are currently up by 1.6% in Frankfurt.

In a statement issued today, Volkswagen only refers to the scandal as the “diesel issue”, with fresh boss Matthias Müller saying: “The figures show the core strength of the Volkswagen Group on the one hand, while on the different the initial impact of the current situation is usually becoming clear. We will do everything in our power to win back the trust we have lost.”

The statement also notes which “Because of charges related to the irregularities from the software used for certain diesel engines, we expect 2015 operating profit for both the Group in addition to the Passenger Cars Business Area to be down significantly year-on-year.”

However, the firm has already set out its recovery plan, which hinges on a next-generation design on the Phaeton. The fresh design was confirmed for production earlier This specific month, in addition to will arrive as an all-electric rival to the Tesla design S.

The fresh car will “be the flagship of the brand’s profile over the next decade”, the company says. The Phaeton is usually anticipated to reach production in 2020.

Revealing details of the vehicle’s specification for initially, Volkswagen said the vehicle will feature “a pure-electric drive with long-distance capability, connectivity in addition to next-generation assistance systems”.

Wolfsburg insiders with knowledge of Volkswagen’s future design plans say the electric Phaeton will share its platform architecture, drive system in addition to battery technology with the upcoming Audi Q6 e-tron – as previewed by the e-tron Quattro concept at the Frankfurt motor show.

Volkswagen will reduce spending by €1 billion (£750m) per year from the wake of the dieselgate emissions scandal, as well as refocusing its development plans as the firm seeks cut costs in addition to reaffirm its environmental credentials among car buyers. VW traditionally invests around €10bn (£7.5bn) per year on research in addition to development alone.

Among the most radical decisions is usually an overhaul of the VW Group’s approach to diesel engines. via at This specific point on, the group will only use modern diesel engines with selective catalytic reduction in addition to AdBlue injection in Europe in addition to the United States – the two regions most heavily affected by its emissions scandal.

Development in addition to modification of the group’s standardised MQB platform will also be accelerated, that has a focus on bringing a fresh generation of plug-in hybrid vehicles to market. VW says which wants to produce hybrids with greater range, as well as developing fresh mass-market electric vehicles that has a range of more than 186 miles. Alongside the fresh products, VW will also develop a fresh 48V mild hybrid system in addition to create more efficient petrol, diesel in addition to CNG engines.

Volkswagen will also create a fresh modular electric toolkit – dubbed MEB – which will be used across the VW Group brands. The toolkit be used for both passenger cars in addition to LCVs in addition to will be designed for all vehicle in addition to Centeng types. VW says the MEB toolkit will allow for “particularly emotional vehicle concepts”, in addition to will enable an all-electric range of 250-500km (155-310 miles).

Hinting which the Group is usually also well on the way to developing purely autonomous vehicles, the statement also says: “A fresh standard with regard to connectivity in addition to driver assistance systems is usually to be defined.”

Additionally, Volkswagen will accelerate its current efficiency programme. Company chairman Dr. Herbert Diess said: “The Volkswagen brand is usually repositioning itself for the future. We are becoming more efficient, we are giving our product range in addition to our core technologies a fresh focus in addition to we are creating room for forward-looking technologies by speeding up the efficiency program.

“We are very aware which we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency program in addition to in giving our product range a fresh focus.

“We are working at top speed on these issues. The Volkswagen team has proved which stands united in addition to is usually fully focused on shaping the future. We have at This specific point laid the further foundations for which.”

Read more on the Volkswagen emissions scandal:

Six things the firm could cut

Bugatti under threat as boss warns of ‘painful’ cuts

EA288 engine given all-clear

Blog – navel gazing at Volkswagen

Blog – Keeping up with pollution laws is usually not always easy for car makers

Blog – How Volkswagen can survive its emissions scandal

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