May 2, 2019 / 1:45 PM / 4 months ago

Volkswagen sets aside 5.5 billion euros in contingent liabilities for diesel scandal

FILE PHOTO: The logo of Volkswagen in Berlin, Germany February 27, 2019. REUTERS/Fabrizio Bensch/File Photo

FRANKFURT (Reuters) - Volkswagen said it has set aside 5.5 billion euros ($6.16 billion) in contingent liabilities to cover possible risks arising from a diesel cheating scandal, chief financial officer Frank Witter said on Thursday.

With the release of quarterly earnings on Thursday VW revealed it had set aside 1 billion euros in risk provisions to help pay for the diesel emissions cheating scandal, taking the overall cost of diesel cheating to 30 billion euros.

In addition, VW has set aside 5.5 billion euros in contingent liabilities of which 3.4 billion euros has been earmarked to cover potential lawsuits, Witter said.

In 2015 VW was caught using illegal engine control software to cheat U.S. pollution tests by masking excessive levels of nitrogen oxide pollution coming from its diesel cars.

Reporting by Edward Taylor, editing by Riham Alkousaa

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