Volkswagen says diesel fix will cost another $2.9 billion


Volkswagen (OTC:VLKAY) said Friday it will book another charge of around $2.94 billion to cover the cost of fixing cars affected by its diesel emissions scandal.

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The new charge, which Volkswagen will take in the third quarter, brings the total cost of the scandal to $30 billion.

The German automaker said it needs to increase provisions for a buyback and retrofitting program because hardware repairs are “proving to be far more technically complex and time consuming.” The program, part of a settlement with U.S. authorities, includes 475,000 2-liter TDI vehicles.

Volkswagen is repairing 8.5 million diesel-powered cars in Europe, but most of those vehicles only need a software update.

Volkswagen will release its third-quarter earnings on Oct. 27.

The company has been under a cloud since 2015 over its equipping of diesel cars with illegal software that enabled cheating on U.S. emissions tests. Volkswagen has agreed to more than $20 billion in fines and civil settlements over the scandal.

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Under the $14.7 billion settlement related to Volkswagen 2-liter vehicles, the company agreed to fix or buy back 85% of the vehicles by June 2019 or face additional penalties.

The Associated Press contributed to this report.

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