WOLFSBURG, West Germany — West German auto maker Volkswagen AG said it may have lost up to $266 million through possibly illegal foreign exchange dealings.
"Strong suspicions have emerged of punishable acts in connection with currency transactions of Volkswagen AG to the detriment of the company," spokesman Ortwin Witzel said in a statement Tuesday. Although reserves will have to be set aside to cover the possible losses, Witzel said Volkswagen's 1986 earnings will match its 1985 results. Net income totaled $256 million in 1985.
Volkswagen has asked the nearby Braunschweig district attorney's office to investigate possible fraud, misrepresentation and forgery charges in connection with the transactions, Witzel said.
Others Not Named
He said the dealings may involve members of Volkswagen's management and people outside the company. He did not elaborate in the statement, which was distributed to the news media.