German auto maker Volkswagen will pay an additional €2.5 billion ($3 billion) fine for installing emissions cheating software in its diesel vehicles.
Analysts estimate that diesel scrappage in Germany could cost Volkswagen up to another EUR1.2 billion.
The sizable increase to VW's financial woes comes a full 15 months after the company reached a settlement with USA authorities to either buy back or retrofit around 500,000 tainted vehicles, including Golf, Jetta and Audi A3 models.
Shares in the company were down 1.27 percent on the news.
"The size of the provision is surprisingly large, considering the numbers of cars involved isn't very large", said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler.
"We have to work more on the hardware", he said.More news: Bronx school under tight security day after deadly stabbing
Two years after the problems first emerged, Volkswagen is still struggling to put the crisis behind it.
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.
In late 2016, Volkswagen pleaded guilty to conspiracy to defraud the USA government over the diesel scandal and agreed to pay almost $25 billion in fines, penalties and compensation, after it settled a number of civil lawsuits. The fix is taking longer and some cars had to be worked on a couple of times.
That is, unless you happen to be Volkswagen, which is still hemorrhaging greenbacks in spectacular fashion courtesy of the never-ending Dieselgate scandal. reports the company will plug the unexpected loss into its third quarter operating results, which Volkswagen will announce on October 27. Net liquidity was EUR23.7 billion at the end of June, down 17.5% from a year earlier.
Three months ago, the U.S. Environmental Protection Agency approved planned fixes to Volkswagen's 2-liter engine diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle Convertible and Audi A3 models. "However, given the uncertainty in Europe about diesel cars and the future investments that need to be made for electric cars, that risk is rising".