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Volkswagen records sharp 2015 loss on emissions scandal

Ashlee Espinal | CNBC

Volkswagen on Friday reported heavy losses for 2015 as the fallout from the emissions scandal which has engulfed the carmaker took its toll.

The net loss for last year stood at 1.582 billion euros ($1.77 billion). Shares in the group dropped 6 percent following the news.

The firm said the cost of provisions to cover the emissions scandal had risen to 16.2 billion euros from a previous estimate of 6.7 billion euros.

It expected 2016 sales revenue for the Volkswagen Group to be down by as much as 5 percent year-on-year.

A measuring hose for emissions inspections in diesel engines sticks in the exhaust tube of a Volkswagen (VW) Golf 2,0 TDI diesel car at a garage in Frankfurt an der Oder, eastern Germany, on October 1, 2015.
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Volkswagen had delayed the release of 2015 earnings until Friday due to uncertainty surrounding the emissions rigging scandal.

It proposed a dividend of 0.11 euros per share for 2015, down from 4.8 euros per common share for 2015.

Volkswagen's supervisory board has hired law firm Jones Day to lead an investigation into the emissions scandal, and said the report was "far advanced". It could however not yet publish the results of its preliminary investigation. Jones Day expects to complete the probe in the fourth quarter.

In a statement, Volkswagen said it regretted that it had to move away from its original plan to disclose interim results of the investigation by the end of April.

It said the delay was due to proceedings involving Volkswagen and the diesel matter in the United States.