Volkswagen takes €16bn hit for diesel scandal as it makes €4bn loss

Carmaker's executives agree to pay cuts as VW doubles its provision for the diesel emissions scandal

Volkswagen has slumped to its first annual loss in more than 20 years after setting aside a16.2bn (12.6bn) to cover the cost of its diesel emissions scandal.

The German carmaker plunged to a loss of a4.1bn for 2015, worse than analysts had expected and the company's first annual loss since 1993. It follows a a12.7bn profit in 2014. The firm also revealed sizeable pay cuts for senior staff to reflect the impact of the scandal on its results, which it was due to report in early March but was forced to delay in light of the diesel affair.