VW's Scandal Leads to First Loss in 15 Years

Company is $1.83B in the red for last quarter
By Newser Editors and Wire Services
Posted Oct 28, 2015 12:15 AM CDT
New VW Boss: Sorry About the Scandal, Here's Our New Car
Herbert Diess apologizes at the beginning of a Volkswagen press conference at the Tokyo Motor Show.   (Eugene Hoshiko)

Volkswagen's new chief executive, Herbert Diess, apologized at the Tokyo Motor Show Wednesday for the automaker's emissions-cheating scandal, promising to win back customer trust, and said it will delay the launch of a diesel vehicle in Japan. The head of VW's Japan division appeared at the VW booth before Diess and bowed for several seconds in a Japanese style of apology. Diess made no bow. "On behalf of my entire company, I'd like to apologize," said Diess, a recent hire from BMW, stressing that the priority is to fix the problem, uncover what happened, and make sure it never happens again.

This comes as the company reported a net loss of $1.83 billion in the third quarter as earnings took a hit from $7.4 billion in set-asides for recalls and fines connected to the scandal. The Guardian reports it's the first time the company has posted a quarterly loss in at least 15 years. The company, which has admitted installing test-cheating software in 11 million vehicles, says full-year profits will probably be "down significantly," but sales revenue is still forecast to rise, reports the BBC. (Leonardo DiCaprio is producing a movie about the scandal.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.