Wednesday, 28 October 2015

VW hit by £2.5bn loss after emissions scandal

Volkswagen has reported a third-quarter operating loss of €3.5bn (£2.5bn) in the wake of the diesel emissions scandal. This scandal has really taken a toll on VW.
VW said it would have made a profit of €3.2bn (£2.3bn) if the "diesel issue" had not emerged and the “diesel issue” has created so much trouble for the firm financially.
Matthias Muller  who is Chief executive of  VW said: "The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear.
"We will do everything in our power to win back the trust we have lost." I hope they will be able to repair their destroyed image and bounce back like Toyota.
Volkswagen also announced it has set aside €6.7bn (£4.8bn) to deal with the controversy, €200m (£144m) more than the figure given when the scandal broke last month. Why did the figures change is what I ask. Don’t mind me I don’t even drive a Volkswagen motor and I am not buying anyone soon.
They also admitted last month that they had installed software designed to cheat diesel emissions tests in 11 million vehicles around the world, almost 1.2 million of which are in the UK. This could have caused so much deaths across the world. I am not sure if any “PR Strategy” can pull them out of this mess easily. I am not going to buy any VW motors until I fell safe to drive their cars. They have definitely lost the public trust in their brand. I advice  all heads of departments in VW to resign.