Volkswagen shakes off emission scandal with a strong quarter

But it is still setting more cash aside to deal with the fallout of its test cheating...

Volkswagen shakes off emission scandal with a strong quarter

Image: Gareth Fuller / PA Wire/Press Association Images

Volkswagen has stormed back from its emission cheating scandal with operating profits before exceptional items of €7.5bn for the first half of 2016.

The German manufacturer has set aside an additional €2.2bn to deal with legal costs, mainly in the United States, related to the emission test cheating.

The company's shares have enjoyed a jump of almost 6%.

The Wall Street Journal estimates that this means that the operating profit in the second quarter was €4.4bn - this is a 20% increase on last year, and the best quarter on the company's books.

After factoring in costs related to the scandal, operating profit was €5.3bn for the six months - down from €6.8bn last year.

Volkswagen already spent €16.2bn in 2015 dealing with the scandal.

Fallout

On Tuesday it has announced that three attorney generals in the US are planning further action against the company, and that they have concerns about its explaining of the processes which led to the cheating.

Lawmakers in New York, Massachusetts and Maryland have alleged that the company was engaged in a long running and orchestrated fraud.

These suits allege, for the first time, that then-CEO Matthias Müller was aware of decisions which led to the sale of cars in the US which did not meet the country's clean-air standards.

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