The Volkswagen Group is just about ready to announce its first quarterly loss in more than 15 years and it’s all due to the TDI engine cheating.

The Volkswagen Group is just about ready to announce its first quarterly loss in more than 15 years and it’s all due to the TDI engine cheating.

According to 10 analyst estimates compiled by Bloomberg, the Volkswagen Group is expected to reveal tomorrow a €3.26 billion operation loss for the third quarter of 2015 which would represent almost the exact opposite of Q3 2014 when they had a €3.23 billion profit. This is going to be VW’s first quarterly loss in more than 15 years and it’s all because of the diesel scandal which refers to the illegal software implemented on around 11 million VAG cars equipped with the 1.2 TDI, 1.6 TDI and 2.0 TDI engines of the EA189 type to make them pass the emissions tests.

Volkswagen has already announced plans to cut annual investments by €1 billion and will postpone and/or axe model launches that are not absolutely necessary in order to have access to more funds to deal with the diesel mess. Perhaps more worrying is the fact that German newspaper Handelsblatt wrote an article earlier this month saying VW wants to extract €3 billion in price cuts from its suppliers, but this hasn’t been confirmed just yet.

Unsurprisingly, Volkswagen Group CEO Matthias Mueller revealed a few days ago the €6.5 billion they originally set aside for recalling the affected cars won’t be enough as the German automotive conglomerate will face huge fines in the markets where those vehicles were sold. According to Credit Suisse, VAG will end up spending anywhere between €23 and €78 billion.

The future’s looking grim for the Volkswagen Group taking into account that since the scandal became public on September 18, they have already lost approximately €21 billion in market capitalization and obviously investors are not that eager right now to inject funds in a company that has deceived so many people. For the very same reason, sales - especially of TDI models - could suffer a decline in the following period, not just for the VW core brand, but also for Audi, Skoda, SEAT and Volkswagen Commercial Vehicles.

Source: Bloomberg via Automotive News Europe

Volkswagen expected to post first quarterly loss in more than 15 years