Volkswagen's UK financial services division is preparing to disclose a substantial provision linked to a widespread investigation into car loan mis-selling. The UK's Financial Conduct Authority (FCA) is investigating historical discretionary commission arrangements.
The FCA's investigation could lead to a redress scheme estimated to cost the industry £9 billion. Analysts estimate Volkswagen may need to set aside between £500 million and £1.5 billion to cover potential compensation claims.
Volkswagen has not announced a specific figure. Its upcoming financial accounts are expected to offer the first official indication of the provision's size.
Volkswagen and other automakers are challenging the FCA's redress scheme in court. Hearings are expected later this year or in early 2027.