This is outstanding. According to Credit Suisse analysts, the entire Dieselgate could cost the Volkswagen Group up to 78 billion Euros. This is the worst case scenario. But in reality, the problem could be much bigger because there are lots of Euro 5 cars blocked at dealers and because the negative impact on VW’s image will make the people to go for another marque.
There’s also the issue of Volkswagen Financial Services which according to the analysts is already having problems because they have to borrow more money than before in order to lend it to customers.
The 78 billion Euros also represents about seven time Volkswagen Group’s last year net profit which is a big, big thing.
The most happy scenario for Volkswagen will cost the group around 23 billion Euros, which is about 3.5 times more than the Germans allocated for the Dieselgate (6.5 billion Euros).
Source: CNN
