Volkswagen 3Q Operating Profit to Be Burdened by EUR2.5 Billion Charges

By Max Bernhard Features Dow Jones Newswires

Volkswagen AG (VOW.XE) warned Friday that its third-quarter operating result would be burdened by special items of around 2.5 billion euros ($2.94 billion) connected to recalls in North America.

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The German car maker said the increase in provisions was due to buyback and retrofitting programs for models fitted with its 2.01 TDI engine. Settlements in North America proved to be "far more technically complex and time consuming" than expected, the company said.

In late 2015 Volkswagen disclosed that as many as 11 million cars world-wide contained software that allowed them to evade emissions tests.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

September 29, 2017 04:10 ET (08:10 GMT)