Volkswagen said today it had set aside $8.8 billion to buy back or fix diesel-powered cars that had been rigged to cheat in emissions tests.
The sum is part of a bigger sum the company deducted from last year's earnings to cover the costs of the emissions scandal, in which its cars were fitted with software that enabled them to pass tests but then turned emissions controls off during everyday driving.
The German automaker further broke down the set-aside for 2015 by saying it included $7.9 billion for fines and legal costs worldwide.
Analysts say the final bill will likely be much higher, when including the impact of lower sales. Volkswagen says it is reporting costs that it knows about at the present time.
Volkswagen is currently working out a settlement with U.S.