The crisis enveloping Volkswagen AG, the world's top-selling carmaker, escalated Tuesday as the company issued a profit warning following a stunning admission that some 11 million of its diesel vehicles worldwide were fitted with software at the center of a U.S. emissions scandal.
In a statement, the German company said it was setting aside around $7.3 billion to cover the fallout from the scandal that is tarnishing VW's reputation for probity and seriously undermining its share price. There was no mention of any fines or penalties.
In the wake of its statement, VW's share price was down another 17.