Volkswagen has said that it will set aside €6.5bn to cover the costs of the investigation into how its diesel cars cheated emission tests, sending its shares slumping.
“Volkswagen is working at full speed to clarify irregularities concerning a particular
software used in diesel engines,” the Wolfsburg, Germany-based company
said in statement.
The manufacturer said it will adjust its earnings forecasts for 2015 accordingly, Bloomberg reported. VW shares plunged for a second day after the announcement.
The move will make a significant hit in its earnings this quarter, as the German carmaker struggles with the impact of the scandal.
In a statement, the German carmaker says that it will not tolerate any legal violation, and is committed to winning back customers’ lost trust.
And it also cautions that that the €6.5bn could be revised, as the investigation continues.
Volkswagen has also revealed that around 11 million diesel vehicles worldwide were fitted with the software at the centre of the US emissions scandal.
It also pledged to work “intensely to eliminate these deviations through technical measures.”
