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Thanks To Dieselgate, Volkswagen Is In Bad Shape

(Credit: Volkswagen)

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Thanks To Dieselgate, Volkswagen Is In Bad Shape

Volkswagen badge

Volkswagen badge (Credit: Volkswagen)

With the whole “resolution” of Dieselgate, or VW coming up with a plan for the 2.0-liter TDIs, some people thought the whole mess was over. Think again, because the financial crapstorm for Volkswagen is about to get far worse.

Thanks to Autocar really digging into VW’s latest financials, we now know just how bad things are. Sales revenue is down. Profits are way down. It’s possible Volkswagen will be closing factories. Jobs will be lost, families disrupted.

Bentley’s a big money drain. For the first quarter of 2016, vehicle deliveries dropped more than 30 percent. That adds up to $59 million in lost revenue. It’s possible the VW Group could spin off the brand, after saying it wouldn’t.

Not everything is doom and gloom. The company has more cash on hand than before. VW Group vehicle deliveries were up slighting in Q1. Audi, Porsche and Skoda are all seeing sales increases.

But all of this is before the flood of Dieselgate financial penalties hit. Government fines and legal costs in the US alone will amount to billions of dollars. What will the VW Group look like after everything? It might never be the same.

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