Its shares dropped after the statement and were down 3.1 per cent at the bottom of the German blue-chip DAX index which was up 0.2 per cent.
VW's diesel emissions scandal bill is set to reach $30 billion as the German vehicle manufacturer faces another $3 bill to fix affected engines in the United States.
The diesel cars in the US affected by scandal only represent a small part of the 11 million rigged cars globally.
German weekly Der Spiegel reported today that VW could face further scrutiny because it failed to properly inform USA regulators about changes to emissions control software in almost one-half million cars with gas engines.More news: Michelle In Talks To Join Tom Hardy, Riz Ahmed In 'Venom'
The additional provisions will hit operating results in its third-quarter report, due October 27, the Wolfsburg, Germany-based company said Friday in a statement.
Volkswagen has recalled about 11 million vehicles worldwide since admitting two years ago to manipulating emissions tests in the United States, about 8.5 million of the figure are in Europe. The fix is taking longer and some cars had to be worked on a few times.
Porsche Automobil Holding SE, the investment vehicle that controls a majority stake in Volkswagen, said the company's provision hike would negatively affect its third-quarter results.
At the Frankfurt motor show earlier this month, Volkswagen outlined plans to move away from combustion engines with electrified variants of all 300 models in the 12-brand group's lineup. Facing threats of a ban on diesel cars by German cities under pressure to reduce pollution, Volkswagen and other auto makers are offering up to EUR10,000 in discounts on a new auto for customers who trade in old diesel vehicles. The Volkswagen warranty extends along with those loans to help save the first-and even second buyer of a VW-repair costs.
Public prosecutors have taken former Volkswagen Group powertrain development director Wolfgang Hatz into custody in Germany over the Dieselgate fraud scandal.