Cost of Volkswagen emissions scandal balloons to $18B

The estimated cost of Volkswagen Group's emissions scandal has escalated to more than $18 billion, more than double the amount the company had previously set aside, the company said Friday.

The German automaker said it had recorded a one-time charge of about $18.2 billion in 2015 to cover the cost of the diesel scandal, including what it described as "pending technical modifications and customer-related measures as well as global legal risks."

The company had previously set aside about $7 billion to cover the cost of repairs — but the mushrooming tab appears to reflect the likelihood of a massive settlement with U.S. authorities over the illegal software installed on about half a million diesel cars.

Volkswagen reaches 'substantial' settlement to buy back, repair cars

"The emissions issue significantly impacted the Volkswagen Group’s business in the 2015 reporting period," the company said in a statement that was characteristically without rhetorical flourish or embellishment.

Volkswagen swung from a 10.8 billion-euro profit in 2014, or about $12.2 billion today, to a 1.6 billion-euro loss in 2015, or about $1.8 billion. It was a period marked by "high extraordinary charges," VW said.

Vehicle sales fell 2% to 9.93 million units for the year.

Revenue rose 5.4% to $240 billion.

"The Volkswagen Group's operations are in great shape, as the figures before special items for the past fiscal year clearly show," VW CEO Matthias Mueller said in a statement. "Were it not for the sizable provisions we made for all repercussions of the emissions issue that are now quantifiable, we would be reporting on yet another successful year overall."

He added: "The current crisis – as the figures presented today also reveal – is having a huge impact on Volkswagen's financial position. Yet we have the firm intention and the means to handle the difficult situation we are in using our own resources."

Another emissions scandal? Mercedes-Benz parent Daimler opens probe

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.