Investing.com -- Volkswagen AG (OTC: VWAGY ) forecasts a financial impact of €1.5 billion ($1.6 billion) this year due to stricter European Union car emissions standards, which the automaker anticipates it may not meet. The estimated costs encompass potential penalties for surpassing the EU's more stringent emissions target.

Rolf Woller, VW's head of investor relations, shared this information with analysts during a call on Wednesday. In addition to potential penalties, the company projects that its earnings will be impacted by a shift in sales. Volkswagen (ETR: VOWG_p ) expects to sell more electric vehicles, which are less profitable than combustion engine models, in an effort to meet the new emissions standards.

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