The group’s delayed annual news conference Thursday marked a valiant attempt by new Chief Executive Matthias Müller to shift the debate.
Advertisement
The company has hired law firm Jones Day to investigate the practice of using “defeat device” technology to cheat on diesel emissions tests – a practice first uncovered in the U.S. that was later found to affect 11 million vehicles worldwide.
VW also agree to buy back some cars affected by the emission scandal in a U.S. deal in San Francisco.
The German automaker further broke down the set-aside for 2015 by saying it included 7.0 billion euros for fines and legal costs worldwide.
Mueller said recalling and fixing cars affected by the scandal “will remain VW most important task until the very last vehicle has been put in order”.
Mueller apologized again for the scandal, telling the company’s annual news conference in Wolfsburg, Germany, that “we disappointed many people who trusted Volkswagen”.
Analysts say the impact of lower sales could make the final bill much higher than the company’s figure.
The company said last week that it lost 1.5 billion euros on an after-tax basis after a profit of 11.1 billion euros in 2014.
German vehicle giant Volkswagen said its biggest brand tumbled to a fourth quarter loss, as the compensation costs and the tarnished reputation following the emissions scandal hit the company hard.
The German automaker last week struck a tentative civil settlement with the USA government, California authorities and consumers over the episode in a deal that would give US owners the option of buy backs or compensation.
He stressed that Volkswagen’s auto business remains “fundamentally sound” but detailed a promised plan to emphasize digital services and zero-emissions vehicles.
In its annual report published on Thursday, Volkswagen said it could face “further significant financial liabilities” and that “the funding needed to cover the risks may lead to assets having to be sold”, without elaborating.
Advertisement
CEO Mueller would see 1.19 million euros – or around one third of his performance-related bonuses – withheld.
