VW Financial Services builds reserves for residual value declines

[March 15, 2016]  FRANKFURT (Reuters) - Volkswagen's financial services arm said it had set aside 353 million euros $391 million) in reserves mainly to cover potential declines in residual values on cars in its leasing fleet, in the wake of the diesel emissions cheating scandal.

Of this amount, 286 million euros are earmarked to deal with issues arising from the impact of the scandal, it said on Tuesday.

An additional 96 million euros has been set aside to cover risks to its business in the United States, VW Financial Services said at a news conference.

(Reporting by Edward Taylor; Editing by Maria Sheahan)

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