D’Ieteren, Belgian importer of VW vehicles, will continue to suffer from reduced sales early next year following the scandal involving rigged emissions tests, they revealed in a ‘trading update’ published during a meeting of investors in London on Tuesday. D’Ieteren reckon as well that the impact of the scandal on their 2015 operating income will reach nineteen million euros, though their annual forecast remains unchanged.
In the third quarter of this year, D’Ieteren stopped selling the vehicles involved. “We estimate a loss of 1,260 orders, representing 1% of annual sales,” explained the car dealership group.
As for costs, the current operating income of D’Ieteren Auto should show a loss of eight million euros. Extraordinary costs of eleven million were also mentioned. “These are reserves to cover the logistical cost of recalling vehicles,” explained a spokesperson.
In spite of it all, D’Ieteren’s forecasts are unchanged for the whole of the fiscal year; they expect a 20-25% hike in their pre-tax current profit.
Christopher Vincent (Source: Belga)