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Written by Paul Horrell
Just as the details of VW"s dieselgate settlement in the USA were being announced, we also got the VW Group results for the first half of 2016. They give useful clues as to what the scandal means for the group in the longer term.In last year"s accounts, the Group put aside 16.2bn ( 12.7bn) to cover the scandal. The new settlement and buyback uses up nearly 90 percent of that global provision on just one country, the USA. So in the financial figures for the first half of this year, VW has put aside another 1.6bn ( 1.3bn).Our first takeout is that VW can afford the scandal.In the first half of 2016, the group made 7.5bn ( 6.2bn) operating profit, from which you can subtract that 1.6bn of new dieselgate provision.So the entire cost of the scandal might be little more than a years" worth of Group profit.Mind you, the VW brand itself doesn"t pull its financial weight. The Group"s two main moneymakers are Audi and Porsche, which between them made 4.5bn ( 3.8bn) of operating profit.
Date written: 1 Aug 2016
More of this article on the Top gear website
ID: 4479
Just as the details of VW"s dieselgate settlement in the USA were being announced, we also got the VW Group results for the first half of 2016. They give useful clues as to what the scandal means for the group in the longer term.In last year"s accounts, the Group put aside 16.2bn ( 12.7bn) to cover the scandal. The new settlement and buyback uses up nearly 90 percent of that global provision on just one country, the USA. So in the financial figures for the first half of this year, VW has put aside another 1.6bn ( 1.3bn).Our first takeout is that VW can afford the scandal.In the first half of 2016, the group made 7.5bn ( 6.2bn) operating profit, from which you can subtract that 1.6bn of new dieselgate provision.So the entire cost of the scandal might be little more than a years" worth of Group profit.Mind you, the VW brand itself doesn"t pull its financial weight. The Group"s two main moneymakers are Audi and Porsche, which between them made 4.5bn ( 3.8bn) of operating profit.
Date written: 1 Aug 2016
More of this article on the Top gear website
ID: 4479
