The company has recalled around 11 million vehicles worldwide since admitting to cheating emissions tests.
Frankfurt am Main, Sept 28 (AFP) German prosecutors today said they had arrested a second employee of luxury carmaker Audi as part of a probe into parent company Volkswagen's emissions cheating scandal.
The company said the extra charge is because engines are proving "far more technically complex and time consuming" to adapt.
Volkswagen expects to take a €2.5 billion (£2.2bn) hit as a result of the diesel emissions scandal.
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Up until the most recent charge, VW has set aside €22.6billion euros to cover the costs of fines against them and for vehicle retrofits.
Volkswagen says it expects to take charges of about Dollars 2.9 billion in the third quarter to cover the costs of buying back and retrofitting diesel cars in North America. The scandal has also raised questions and sparked investigations into emissions cheating at numerous other automakers, and has all but ruined diesel's reputation in the passenger auto market around the world. While most of the cars in Europe have been repaired, tougher emissions and fuel economy rules in the USA have made the job more hard, the company said. The company has been facing a shift in automotive technology and is planning to invest about 20 billion euros by 2030 to develop electric vehicles and another 50 billion euros to purchase the batteries needed to power the cars.
The reason for the latest charge is complications in fixing these engines which were harder to do than first expected and relates to the program to buy back or fix up 475,000 2.0-litre diesel cars.
The additional provisions will hit operating results in its third-quarter report, due October 27, the Wolfsburg, Germany-based company said Friday in a statement.
Three months ago, the U.S. Environmental Protection Agency approved planned fixes to Volkswagen's 2-liter engine diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle Convertible and Audi A3 models.