VW profit tops forecast but takes another 'dieselgate' hit

Frankfurt

VOLKSWAGEN said cost-cutting and rising European car sales helped it to beat first-half underlying profit forecasts, though it set aside another 2.2 billion euros (S$3.3 billion) to cover costs related to its "dieselgate" emissions scandal.

Europe's biggest carmaker is battling to restore its reputation after admitting in September to fitting illegal software that could deactivate emissions controls on around 11 million diesel vehicles worldwide.