Volkswagen took a $2.95 billion charge in the third quarter of 2017. The cost to retrofit or buy back U.S. diesel vehicles that was part of the emissions cheating scandal. This added cost pushes Volkswagen’s total cost for the scandal past $30 billion.
One of the reason for the cost of the scandal is “proving to be far more technically complex and time consuming than originally thought, according to an article in The Journal News on September 30, 2017 by Kevin McCoy. This added cost could erase more than half of Volkswagen’s $5.3 billion earnings for the third quarter. Volkswagen share closed .07% lower.
The scandal involved cheating technology installed in Volkswagen’s diesel powered vehicles to circumvent U.S. clean-air emissions standards. In June, 2016, Volkswagen agreed to a $14.7 billion settlement for claims over its U.S. cars with 2 liter diesel engines three months ago. The United States Environmental Protection Agency approved planned fixes to Volkswagen’s 2 liter diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle convertible and Audi A# models.
This latest financial hit comes as Volkswagen ties to get away from combustion engines. Earlier, in September, 2017, the company joined the German automakers Daimler in announcing plans for a long range electric vehicle in a chance to compete with electric cars made by Tesla, General Motors and other global auto companies.