Volkswagen has met its operating profit forecasts for the first quarter of 2019, despite having suffered an impact of 1,000 million euros due to legal costs related to the Dieselgate scandal.
The company set aside the amount to cover the additional legal risks of emission deception findings, with cases involving investors and customers still ongoing since the revelations came to light in 2015.
The firm asserts that the provision is unrelated to the charges brought against former CEO Martin Winterkorn and four other executives, who are charged with fraud for failing to report systematic deception. This brings the total costs of the scandal to some 30 billion euros, according to reports.
Despite this, the increase in sales of the company$0027s SUVs and an extensive cost reduction program have enabled Volkswagen to forecast revenue growth of 5% this year, as well as a group operating profit of between 6.5% and 7.5% on sales.
3,900m, lower than in previous years, but in line with analysts$0027 expectations. Bentley is also reported to have reversed its record losses. However, passenger car sales fell by 3% to 2.55 million vehicles during the quarter, with supply bottlenecks caused by having to comply with the stricter WLTP emissions regulations, which still has a side effect.
VW dieselgate problems continue after German court decision
Diesel door: VW accepts 28,600 claims in the UK following software correction
Former CEO of Volkswagen charged with Dieselgate fraud