Volkswagen undergoes huge losses

Volkswagen has suffered a €3.48bn operating loss during the third quarter of 2015 - its first set of financial results since the company became embroiled in its Carbon emission test-cheating scandal.

This was an even-steeper decline than the €3.26bn operational loss which analysts had expected - the total cost of this episode could be as high as €78bn.

Factoring out the massive damage done by the recent controversy the company's profits are still lower than they were one year ago. Operating profits after special items came to €3.206bn - down from €3.23bn in the third quarter of 2014.

Reuters reports that this is the first time in 15 years that the car manufacturer has recorded a quarterly loss.

VW has warned that its sales will remain flat for the remainder of the year. It has also warned that full-year profits will take a significant hit, saying:

"Because of charges related to the irregularities in the software used for certain diesel engines, we expect 2015 operating profit for both the Group and the Passenger Cars Business Area to be down significantly year-on-year."