Volkswagen's USA division on Friday introduced a new six-year/72,000-mile warranty on most new VW vehicles sold in the United States.
Hatz was employed by Volkswagen Group as an engine developer for Audi between 2001 and 2007.
Separately, Porsche SE, which owns a 30.8-per cent stake in VW and tracks its earnings, said the new provision would also affect its results, but stuck to the wide range for its expected 2017 post-tax profit of 2.1-3.1 billion.
Wolfgang Hatz, 58, former chief of engine development at the German carmaker, is the second executive arrested in Germany over the scandal; the other was Giovanni Pamio, an Italian citizen and former executive in Audi's diesel engine development department.
The affected vehicles in North America are only a small part of the almost 11 million rigged cars globally.
In August, VW reported US sales up 9% year over year for the month and 6.4% for the first eight months of the year.
Europe's biggest automaker admitted in September 2015 that it had used illegal software to cheat US diesel emissions tests.
BNP Paribas analyst Stuart Pearson said he has provided for another 1 billion euro charge to hit VW's fourth-quarter results because of outstanding technical fixes for the 3.0-litre Audis. Still, the investment vehicle for the descendants of the VW Beetle's creator stuck to a forecast for net income of at least 2.1 billion euros this year.
VW's diesel emissions scandal bill is set to reach $30 billion as the German auto manufacturer faces another $3 bill to fix affected engines in the United States.
"We have to do more with the hardware, " a VW spokesman said. While VW has worked to fix these cars, it's rejected paying compensation to roughly 8 million European owners.
"Volkswagen remains very liquid in terms of its financial position and the risk of a capital increase is low", said Metzler's Pieper.
German authorities on Thursday arrested a former high-ranking Volkswagen executive, the first German citizen arrested in the country in relation to the carmaker's diesel emissions scandal, according to media reports.