Volkswagen Freezes Promotions - Expects Loss Of At Least $3 Billion In Third Quarter

Volkswagen will freeze managerial promotions next year at its VW division as part of a savings drive to help meet more than 30 billion euros of costs arising from the diesel emissions tests scandal, a German business magazine said on Saturday.

The German company also plans to re-use as many parts as possible in the next generation of its popular Golf model to save hundreds of millions of euros, according to the Manager Magazin report, which cited Volkswagen sources.

Europe's largest carmaker is battling the biggest business crisis in its 78-year history after admitting last month it installed software in diesel vehicles to deceive U.S. regulators about the true level of their toxic emissions.

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PUGPROUD - 10/26/2015 11:08:49 AM

+2 Boost

Drip...drip...drip! Increasing the estimated loss will likely be a recurring theme for the next two years. VW is looking down a deep dark hole with no bottom in sight. Every country, every lawyer and every customer will be looking to getting payback on this cheating scandal. If customers can sue for the drop in residual values despite any fixes to their cars the amount of the loss could well be in the tens of billions. I don't know if German pensions are tied to VW's stock value but if they are I would start to worry big time if I worked for them.

TheSteve - 10/26/2015 12:09:22 PM

+1 Boost

And articles are now stating that the estimated cost of fines can be as high as US$30 billion. This scandal is epic.

MDarringer - 10/26/2015 9:01:12 PM

+2 Boost

Marchionne needs to save VWAG...oh the irony!