Volkswagen To Post First Quarterly Loss in 15 Years

Aaron Cole
by Aaron Cole
volkswagen to post first quarterly loss in 15 years

Volkswagen will post Wednesday its first quarterly loss in 15 years after the automaker was rocked this summer with a scandal that affected 11 million vehicles and cost the company tens of billions of dollars in lost value already.

Bloomberg (via Automotive News) reported that 10 analysts estimated that the company would post a $3.6 billion loss for the quarter ending Sept. 30.

Although the company said it reserved more than $7 billion to help pay for the scandal, many agree that the loss will be far greater — from $16 billion to $86 billion.

New Volkswagen CEO Matthias Müller will address investors for the first time during the earnings call. At stake is the company’s future profitability and appearance for the beleaguered automaker who has yet to define specifically how it will fix its cars worldwide.

“We understand that VW is in a very tricky spot,” Arndt Ellinghorst, a London-based analyst with Evercore ISI, told Bloomberg. “Nevertheless, the company should be far more proactive and release more factual details concerning its recalls.”

In 2013, Volkswagen spent more on research and development than any other company — in any sector. This month, Müller said that the company would shed non-essential projects from its budget to keep the company afloat during the crisis.

According to Bloomberg, the company may have a sizable warchest to help weather the storm — at least temporarily.

At the end of June, Volkswagen had $23.7 billion in net liquid assets on hand, and an additional $12 billion in marketable securities it could sell if needed. The company also recently finished its settlement with Suzuki, which bolstered its balance sheet by roughly $4 billion.

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  • on Oct 27, 2015

    First of MANY quarterly losses, Welcome to your future VW.

  • RideHeight RideHeight on Oct 28, 2015

    Is VW the Lance Armstrong of automobilia? Would a European plebiscite return both to their former status in defiance of nannydom?

  • Allamericanred Interesting that as a car design nut that hates most American Suv designs that I think it is a pretty good design that stands apart but is not odd. The color really impacts how it looks to me. Some just do not work
  • NormSV650 I had a 2014 Vsport back in the day. It have a quiver feeling over some bumps in turns. Currently have a 2018 CT6 it is very solid and a great driver's car for the size.
  • NormSV650 I had a 2014 Vsport back in the day. It have a quiver feeling over some bumps in turns. Currently have a 2018 CT6 it is very solid and a great driver's car for the size.
  • MaintenanceCosts I saw my first IS500 out in the wild today (a dark-grey-on-black example) and it struck me that it was much more AMG-like than this product. (Great-looking and -sounding car.)
  • ToolGuy https://youtu.be/Jd0io1zktqI
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