Volkswagen posted its first quarterly loss in at least 15 years on Wednesday. The company announced it has set aside 6.7 billion euros ($7.4 billion) to cover the costs of its rigging of diesel emissions tests. The cheating could eventually cost the company more than $33 billion.
It has been nearly six weeks since VW admitted using illegal software to cheat U.S. diesel emissions tests. The company is now under pressure to identify the culprit of the devices and fix up to 11 million affected vehicles.
The company’s stock valuation has lost nearly 25% of its original value, it’s long-time CEO was ousted, and now the company is in full-on defensive mode.
VW reported on Wednesday a third-quarter operating loss of 3.48 billion euros.
Volkswagen officials now say the company will have operating profit drop “significantly below” last year’s record 12.7 billion euros, even though its auto sales are seen matching last year’s record 10.14 million deliveries.
CEO Matthias Mueller says the cost associated with the fix will likely climb as more buyers bring in their vehicles to have them fixed. Some VW cheats can be fixed with software, while others require a more robust hardware upgrade.
“It is currently impossible to assess the legal risks connected with the diesel issue due to the early stage of the comprehensive and exhaustive investigations, the complexity of the individual factors and the large number of open questions,” the company said in its quarterly report.