Volkswagen says some 11 million diesel vehicles were equipped with the software that helped them cheat emissions tests worldwide, just days after the EPA ordered the automaker to recall 500,000 vehicles over the deception.
Here’s more from the company’s statement:
To cover the necessary service measures and other efforts to win back the trust of our customers, Volkswagen plans to set aside a provision of some 6.5 billion EUR recognized in the profit and loss statement in the third quarter of the current fiscal year. Due to the ongoing investigations the amounts estimated may be subject to revaluation. Earnings targets for the Group for 2015 will be adjusted accordingly.
Volkswagen does not tolerate any kind of violation of laws whatsoever. It is and remains the top priority of the Board of Management to win back lost trust and to avert damage to our customers. The Group will inform the public on the further progress of the investigations constantly and transparently.
That amount of 6.5 billion euros (about $.7.25 billion) is unlikely to help the automaker’s shares, which lost nearly a fifth of their value on Monday, and fell a further 5 percent Tuesday.
On Monday night, Michael Horn, the president and CEO of Volkswagen Group of America, said the company had “totally screwed up” over the scandal, which has prompted calls for investigations into the world’s second-largest carmaker.
French Finance Minister Michel Sapin called for a “Europe-wide” investigation into diesel cars.