Analysts say the final cost will be significantly higher. To be fair, though, Volkswagen says that its allocations are based on now known costs, meaning that they could be revised upward in the future.
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Mr Muller added that there had been an “unexpected delay” in the plan to recall vehicles in Europe.
The huge charge pushed VW to a bottom-line loss of 1.58 billion euros in 2015, its first loss since 1993.
Volkswagen has said that repairing European vehicles is simpler than vehicles in the US, making it unnecessary to buy cars back from customers.
The company was forced to ratchet up the amount of money it set aside to handle the scandal to $18.2 billion – that amount could increase as more fines and lawsuits come down the pike. The company would soon form a legally independent company to promote business in mobility services, which can include things like ride-sharing apps and car-sharing, he said.
Automotive giant Volkswagen (VW) has unveiled new transformative outlines for its future projections, which will see the company make electric vehicles (EVs) its new “hallmark”, in an attempt to rectify the recent emissions-rigging scandal.
Daimler AG appointed investigators from Deloitte Touche Tohmatsu to help gather documents and e-mails on its diesel-engine emissions, part of a probe requested by the U.S. Department of Justice.
A security guard stands on the roof of the Volkswagen old power plant and monitors the area during the company’s annual press conference in Wolfsburg, Germany, Thursday, April 28, 2016.
German automaker Volkswagen plans to pay its 12 current and former top managers over $71 million despite the record losses the company suffered a year ago following the emissions scandal.
The cash being held back would first be transformed into preference shares and only then paid out in full in 2018 if the price of the shares on the stock exchange had risen by at least 25 percent by the end of the three-year period, VW explained.
To cap off the bad-news-about-diesels, the company revealed the former VW Group CEO Martin Winterkorn, who resigned because of the diesel scandal, received a 7 million pound ($10.1 million) severance payment. That includes 1.4 million euros in base pay and 5.9 million euros in performance-related pay.
The carmaker said it would withhold a portion of bonus payments for now, but could award them at a later date.
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Volkswagen would emerge stronger from the current crisis, Mueller insisted, “because we have a solid position on the operational side”.
