Volkswagen is taking another $3-billion charge to fix diesel engines in the United States, lifting the total bill for its emissions-test cheating scandal to around $30 billion as the German group struggles to put the two-year-old "Dieselgate" scandal behind it.
Volkswagen's US division on Friday introduced a new six-year/72,000-mile warranty on most new VW vehicles sold in the United States. The scandal has also raised questions and sparked investigations into emissions cheating at numerous other automakers, and has all but ruined diesel's reputation in the passenger auto market around the world.
Traders and analysts were disheartened by the fact the company was still paying charges over two years after the scandal broke.
The diesel cars in the US affected by scandal only represent a small part of the 11 million rigged cars globally.
Roughly 11 million cars were recalled around the world for using software to cheat emission regulations, but with the majority of those being in Europe, a $3 billion hit for just a small portion of the cars suggest the automaker's woes are far from over, at least on the west side of the Atlantic. Schmidt reportedly faces up to seven years in prison.
The additional provisions will hit operating results in its third-quarter report, due October 27, the Wolfsburg, Germany-based company said Friday in a statement.
Before Friday, VW had set aside 22.6 billion euros ($26.7 billion) to cover costs such as fines and vehicle refits.
"It has now become clear that we need to do more", a spokesman said Friday. The fix is taking longer and some cars had to be worked on a couple of times. Still, the investment vehicle for the descendants of the VW Beetle's creator stuck to a forecast for net income of at least 2.1 billion euros this year. The Volkswagen warranty extends along with those loans to help save the first-and even second buyer of a VW-repair costs.
The arrest on Wednesday came after investigators searched two premises, a spokeswoman for the prosecution's office in the southern city of Munich told AFP.