VW's diesel emissions scandal bill is set to reach $30 billion as the German vehicle manufacturer faces another $3 bill to fix affected engines in the United States.
The company has recalled around 11 million vehicles worldwide since admitting to cheating emissions tests.
"In the third quarter, negative special items of circa €2.5bn are expected to weigh on the operating result", the German auto giant said in a statement.
The company said the extra charge is because engines are proving "far more technically complex and time consuming" to adapt.More news: Vacuum maker Dyson is building an electric auto
German authorities on Thursday arrested a former high-ranking Volkswagen executive, the first German citizen arrested in the country in relation to the carmaker's diesel emissions scandal, according to media reports. The latest charge raises the total US cost to VW to just under $30 billion.
Volkswagen's diesel emissions cheating scandal continues to get more expensive as the automaker disclosed Friday it would take a $2.95 billion charge in the third quarter due to higher-than-expected vehicle buyback and retrofit costs.
The charge will take a bite out of the financial results scheduled for release on October 27, the Wolfsburg-based company said, explaining that the make-good plan in response to the scandal is "proving to be far more technically complex and time-consuming" than anticipated.
The Sueddeutsche Zeitung and broadcasters NDR and WDR named the arrested suspect as Wolfgang Hatz, who stepped down from his post on Porsche's management board previous year after being suspended over the "dieselgate" investigation. A report from Germany just today says that former Porsche board member and VW engine development chief Wolfgang Hatz has been arrested in connection with the scandal.More news: Former soldier Henry Bolton elected as new leader of Ukip
In the United States, where the diesel test-cheating scandal originated, the carmaker must also provide hardware fixes and in some cases buy back cars.
He was in charge of Audi's engine development from 2001 to 2007 before taking over the role for the entire Volkswagen Group.
The additional costs will be reflected in VW's third quarter results, which will be reported next month.More news: Jane Fonda checks Megyn Kelly, bluntly shuts down question about plastic surgery
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