The VW Group and Issues with Diesel Emissions (Part 3)

Financial results for 2015 and the status of recalls

2016/06/20

Summary
VW Group records a special loss of EUR 16.9 billion and an operating loss of EUR 4.1 billion in 2015
Emissions scandal
Negotiations between the VW Group and U.S. authorities
The recall in Europe
Impact on sales
Key events in the coming months

Summary

(CARB's notice of rejection to VW's recall plans)

In April 2016, Volkswagen (VW) announced its Group financial results for 2015. It had global vehicle sales of approximately 10 million units, sales revenue of EUR 213.3 billion, an operating loss of EUR 4.1 billion, and special losses of EUR 16.9 billion.

VW has not obtained approval for its recall plans from the U.S. authorities yet. It continues to discuss remedial measures with the California Air Resources Board (CARB) and U.S. Environmental Protection Agency. Recall expenses are yet to be determined.

Moreover, there are said to be over 600 civil suits related to the scandal, and while a tentative agreement was reached in a federal district court on April 21, a gag order was issued for the details, and work continues towards a final agreement by the next deadline, which was set for June 21.

	Full-year Jan.-Dec.		y/y	Jan.-Mar.		y/y
	2015	2014	y/y	2016	2015	y/y
Group's global vehicle sales (10K units)	1,001	1,022	2.0% Down	258	261	1.2% Down
Sales revenue (in millions of EUR 100)	2,133	2,025	5.3% Up	510	527	3.4% Down
Operating result (in millions of EUR 100)	-41	127	Fell into the red	34	33	3.4% Up
Special items (in millions of EUR 100)	169 (162 is for emissions recalls)			-