Volkswagen Jetta CKD 15

The Volkswagen Group recently announced its Q3 financial results, where it has recorded an operating loss of 3.48 billion euro, partly as a result of the dieselgate scandal involving the automotive giant.

According to financial data released by the Group, special costs relating to the diesel issue, amounting to 6.7 billion euro, was attributed to the loss experienced in Q3, the first in at least 15 years.

With new VW AG CEO Matthias Mueller, appointed in the wake of the scandal, the company saw net liquidity in its automotive division increase by 27.8 billion euro, with additional liquidity worth in excess of 3 billion euro from sales of Suzuki shares.

The Group had earlier set aside a provision of 6.5 billion euro for recalls relating to the dieselgate issue in Q2, 0.2 billion euro less than the actual figure reported. Increased liquidity would certainly help Volkswagen weather the crisis.

However, Volkswagen AG managed to increase its nine-month, year-on-year sales revenue by 8.5% from 147.7 billion euro to 160.3 billion euro, even as global sales are facing a decline. The operating profit and sales revenue exclude the activities of the Chinese joint ventures.

For the first nine months of 2015, Volkswagen AG saw sales figures hover at 7,430,800 units, while Toyota recorded 7,498,000 units shifted, allowing it to retake the lead in global vehicle sales.