Volkswagen posted its first quarterly net loss in more than a decade following a scandal over emissions from its diesel vehicles, the company announced Wednesday.
The company lost $1.84 billion in the third quarter as it paid to repair illegal software in millions of cars. Volkswagen made a profit of nearly €3 billion, more than $3 billion, last year during the same period. The car manufacturer also lost its spot as the world leader in automobile sales to Toyota and its position is expected to worsen as the fallout from the scandal continues.
Volkswagen was forced to recall an estimated 11 million vehicles around the world in September after the U.S. Environmental Protection Agency fined the company for installing software on diesel vehicles that provided false information about the cars’ emissions.
The company set aside nearly €7 billion ($7.75 billion) to address the continued situation, but officials now say that won’t be enough.
“The initial impact of the current situation is becoming clear,” said Volkswagen CEO Matthias Müller in a statement. “We will do everything in our power to win back the trust we have lost.”
More Must-Reads From TIME
- Meet the 2024 Women of the Year
- Greta Gerwig's Next Big Swing
- East Palestine, One Year After Train Derailment
- In the Belly of MrBeast
- The Closers: 18 People Working to End the Racial Wealth Gap
- How Long Should You Isolate With COVID-19?
- The Best Romantic Comedies to Watch on Netflix
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Write to Justin Worland at email@example.com