Volkswagen expects to take a €2.5 billion (£2.2bn) hit as a result of the diesel emissions scandal.
The company has recalled around 11 million vehicles worldwide since admitting to cheating emissions tests.
It said the extra provisions would be reflected in its third quarter operating results.
The car manufacturer said in a statement: “The reason is an increase in provisions relating to the buyback/retrofit programme for 2.0l TDI [Turbocharged direct injection] vehicles, which is part of the settlements in North America that is providing to be far more technically complex and time consuming.”
It recently announced plans to offer electric versions of all its 300 models by 2030.