April 21, 2016

The Cost Of The Emission Scandal

   April 21, 2016

The Cost Of The Emission Scandal

Changes_in_Market_Cap_Following_VW_Scandal_Since_Sept._18_TMMChart.png

Trader’s remarks: The auto sector has had a tough start to the year due to the weakness in China – their main export market, and the strength of the Euro currency. Volkswagen, in particular, has struggled with its European first-quarter market share reaching a five-year low as auto buyers snubbed the German carmaker’s efforts to resolve its emissions-cheating scandal and turned to other models. Nearly every step of VW’s efforts to recover from the cheating scandal has taken more time than expected. The company pushed back its reporting date for last year’s earnings, delayed its shareholders’ meeting and sought a month’s extension on a court deadline for negotiating a solution for rigged cars in the US. For the company’s remaining shareholders, there is no relief in sight.

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