VW Plans Charge of $18 Billion for Emissions Scandal

A traffic light shows red next to the Volkswagen factory in Wolfsburg, Germany. ENLARGE
A traffic light shows red next to the Volkswagen factory in Wolfsburg, Germany. Photo: Reuters

FRANKFURT— Volkswagen AG VLKAY -1.00 % took a €16.2 billion ($ 18.28 billion) charge related to the emissions cheating scandal, forcing it to slash its 2015 dividends and post a deep loss.

Volkswagen on Friday posted a net loss of €1.58 billion for 2015, compared with a net profit of €10.85 billion a year earlier. The company posted an operating loss of €4.1 billion for the year. Revenue rose 5.4% to €213.3 billion from €202.5 billion.

Volkswagen will cut its ordinary dividend to €0.11 per share after paying €4.80 for 2014, and its dividend on preferred shares to €0.17 from €4.86.

Looking to the current year, Volkswagen said group revenue would fall as much as 5% partly due the emissions issue, though overall deliveries should be around the level of 2015. It expects a “sharp decline” in passenger car revenue, the company said.

The €16.2 billion in charges last year compares with a previous figure of €6.7 billion that Volkswagen had set aside to cover recalls and repairs of vehicles affected by the emissions scandal. That figure was widely expected to balloon as the scandal spread.

Write to Sarah Sloat at [email protected]


WSJ.com: US Business

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