Volkswagen fined €1.2m over earnings disclosure

Germany’s financial regulator BaFin fined Volkswagen 1.2 million euros, or $1.3 million, for not immediately announcing better-than-expected earnings forecasts several years ago.

BaFin said Volkswagen issued financial forecasts for 2023 that were “significantly higher than market expectations” and should have known the information would have a significant effect on its share price. The regulator said Volkswagen should have shared the information through an ad hoc disclosure as soon as possible.

Instead, BaFin said, the carmaker released the forecasts in a routine press release, contrary to European Union market transparency rules.

Volkswagen’s reputation remains affected by the 2015 diesel emissions fraud scandal. The company has also faced pressure from Chinese competitors and slower progress on electric vehicle technology. In September, it struck a deal with unions to cut 50,000 additional jobs by 2030, bringing its total planned workforce reduction to about 100,000.