WOLFSBURG, Germany (Reuters) - Volkswagen (VOWG_p.DE) could face “further significant financial liabilities” beyond the 16.2 billion euros ($18.4 billion) it has provisioned for its diesel emissions scandal and may need to sell assets as a result, it said in its annual report.
Europe’s biggest carmaker said that although it had made provisions for 2015, uncertainty about the ultimate cost of legal risks and criminal and administrative proceedings could mean that further financial liabilities would emerge.
“The funding needed to cover the risks may lead to assets having to be sold due to the situation and equivalent proceeds for them not being achieved as a result,” it said in its risks and opportunities report published on Thursday.
Demand may decrease, margins in the new and used car business may fall and funds tied up in working capital may increase temporarily, the company said.
Reporting by Andreas Cremer; Writing by Edward Taylor; Editing by Georgina Prodhan