The cost of VW's emissions scandal hits $18.2 billion
The company also announced an operating loss of $4.1 billion for 2015.
A day after a reported deal between Volkswagen and regulators over its emissions scandal, the company offered an update on the cost of the ordeal. This week, reports surfaced that customers would have the option of compensation and repair or allowing VW to buy back any vehicles with the faulty emissions equipment. However, an official announcement on the terms hasn't been made just yet. The diesel emissions scandal in which car systems were rigged to cheat tests affected around 600,000 vehicles.
During an earnings announcement today, Volkswagen disclosed that it took a €4.1 billion ($4.61 billion) operating loss for 2015. What's more, the automaker's emissions scandal is costing €16.2 billion ($18.2 billion) and an additional €400 million ($450 million) was used to restructure commercial and passenger vehicle sectors. The on-going settlement talks kept VW from announcing its 2015 earnings until an agreement could be reached with regulators. This isn't the first time the company has had to increase its forecast losses though, as initial payouts to owners were reportedly $1,250. This week's rumblings indicate that number has increased to $5,000 per vehicle, should an owner choose to go that route.
