Volkswagen skids to loss after huge emissions provision

Volkswagen Group has careered to a €1.3bn pre-tax loss after being forced to set aside a massive €16.2bn (£12.67bn) provision for the global vehicle emissions scandal.

The Wolfsburg-based car maker generated a net loss of €5.5bn for 2015 but maintained its business operations were in "great shape", as proved by a profit before special items that was slightly higher the prior year at €12.8bn.

Chairman Matthias Müller said: “Were it not for the sizable provisions we made for all repercussions of the emissions issue that are now quantifiable, we would be reporting on yet another successful year overall."

He added: "The current crisis – as the figures presented today also reveal – is having a huge impact on Volkswagen’s financial position. Yet we have the firm intention and the means to handle the difficult situation we are in using our own resources.”

Shares in the company were down 1.5% at €136.5.