So what happens to those car-owners now? Are they allowed to drive those cars after this scandal?
Volkswagen Admits to Cheating US Emissions Tests
- Thread starter Sir Matt
- Start date
If not they'll be entitled to go after Volkswagen for damages. I think the EPA may just grandfather such vehicles in, there aren't that many diesel VWs on the roads.
Was out with a fund manager earlier and he pooh-poohed my thesis that it'll end in a rights issue. It's a fair point he raised- Porsche family owns c51%- they pump in millions into a cash raising or lose their majority stake. He admits it is worst case scenario though. He used to be an autos analyst- VW used to make parts for V2 rockets. Dodgy history.
Ah, I see. I keep seeing the term fixed used in the press. Lots of unanswered questions.
VW stock has been getting absolutely hammered. It's down almost 60% off its high. Might be a good time to go in. Toughest call is guessing how this may affect future sales and EPA fines.
I got it at 116,50 on a day when it had sunk as low as 103.
Shortly after I bought, it was at 125. This week it's been as low as 104 I think it is. Currently trading at 109, up on the day.
Which would take a lot of the sting out of the VW specific problem if true.
Could we see the collapse of the group? Certainly don't think they will sell in the US again...
Between the fines levied on them from nearly every country that legally can, to the cost of fixing/recalling the cars and the compensation they will have to pay out to owners. They are going to lose a feck tonne of money, and due to loss of consumer confidence they probably see a huge hit on sales.
Between the fines levied on them from nearly every country that legally can, to the cost of fixing/recalling the cars and the compensation they will have to pay out to owners. They are going to lose a feck tonne of money, and due to loss of consumer confidence they probably see a huge hit on sales.
I would be astonished if VW collapsed.
They have loads of cash and if the above post about other car manufacturers cars also emitting far more in real life is true.......well they won't all collapse will they?
In fact imagine if the actual test procedures and specs themselves turn out to be more the issue (if all these cars prove to emit more in real life). Then this all becomes some other organisation's problem to some degree.
Whilst VW have admitted cheating, the attention might well deflect enough away from them for the share price to be an absolute steal and frankly, if emissions for all cars are way understated, then the playing field is level again, and on a level playing field, VW cars are still head and shoulders above most of their competitor's cars.
They have loads of cash and if the above post about other car manufacturers cars also emitting far more in real life is true.......well they won't all collapse will they?
In fact imagine if the actual test procedures and specs themselves turn out to be more the issue (if all these cars prove to emit more in real life). Then this all becomes some other organisation's problem to some degree.
Whilst VW have admitted cheating, the attention might well deflect enough away from them for the share price to be an absolute steal and frankly, if emissions for all cars are way understated, then the playing field is level again, and on a level playing field, VW cars are still head and shoulders above most of their competitor's cars.
I dunno. I just find it hard to trust this guy...
It's the name isn't it? An anagram of A Follies....I dunno. I just find it hard to trust this guy...
A good read in this week's Economist:
http://www.economist.com/news/brief...carmaker-threatens-engulf-entire-industry-and
http://www.economist.com/news/brief...carmaker-threatens-engulf-entire-industry-and
Also very interesting reading:
http://www.nytimes.com/2015/09/27/b...-be-no-1-ambitions-fueled-a-scandal.html?_r=1
http://www.nytimes.com/2015/09/27/b...-be-no-1-ambitions-fueled-a-scandal.html?_r=1
That's a very good read. It is kind of weird the way we all accepted that the mpg given by a manufacturer will always be miles better than what we would experience if we actually bought the car. That's kind of fecked up, when you think about it. Blatant deception.
What I want to know is when you put the car through it's MOT, well, at least here anyway (where it's called the HU and AU), are these particular emissions not measured and do they only measure CO2 emissions? This must be the case else we'd all have been noticing numbers that don't meet the manufacturers specs at the latest 2 years after buying a new car. So, I can only conclude that the deception was pushed through with because they only had to fool testers once - and they pretty much did those tests themselves! Crazily slack.
They won't - they would almost certainly be propped up by the Government as the auto industry is too important in Germany, and much like the US government stepped in to bailout GM.
Another way to play the VW collapse is to invest in Palladium since it is used in the diesel catalytic converters.
1 in 7 workers in Germany rely on it. Amazing.
Is there any chance VW will give money back or compensate customers who own their vehicles fitted with these devices?
I should think there's a big chance, yes.
Seems us Yanks can't do a single thing right in global affairs other than hammer European-based companies. (Well, I guess there's Iran.)
Where do you place this on the list of auto-maker scandals? GM's faulty ignition resulting in many deaths...Toyota's acceleration glitch... I'd say on a morality scale it's less (unless you can argue successfully those extra emissions resulted in deaths), but from a financial perspective it may hurt worse.
Where do you place this on the list of auto-maker scandals? GM's faulty ignition resulting in many deaths...Toyota's acceleration glitch... I'd say on a morality scale it's less (unless you can argue successfully those extra emissions resulted in deaths), but from a financial perspective it may hurt worse.
If someone reaches that far they'll get a bad strain.
They'll have some recall on the cars and replace parts on them that will inevitably affect the efficiency and performance of the vehicles but will allow them to comply with the emissions standards. Perhaps they'll get some compensation as well to offset the damages of increased fuel costs.
http://www.reuters.com/article/2015/09/30/us-volkswagen-emissions-plan-idUSKCN0RT0OL20150930
They've already tried, something about a certain number of NOx emissions will result in X number of diseases leading to death. The math would be dubious, no doubt.
Their monthly sales increased after the scandal. Doesn't look like consumer confidence will be a problem.
The only thing it will affect is their diesel products.
But as someone pointed out my impression is the same in that this is the tip of the iceburg. Using a sporting analogy they are to car manufacturing what lance Armstrong is to cycling. They will take the fall for a lot more manufacturers
But as someone pointed out my impression is the same in that this is the tip of the iceburg. Using a sporting analogy they are to car manufacturing what lance Armstrong is to cycling. They will take the fall for a lot more manufacturers
Although that's a small amount of car in the grand scheme, that's still 11 million cars.
That's 11 million cars that governments could levy fines against, that's 11 million cars they have to potentially pay compensation for and 11 million cars they have to fix.
In UK they've stop sale of 4000 cars because of this. Thats 4000 cars that they'll either scrap or have to fix.
They probably won't go under, but even if half the people who owns these cars go after them, its a huge chunk of money.
Yeah but their brand value for their petrol cars is still subtantially high. The issue is fear and panick of shareholders where as the average joe will still more than likely buy their products if it's the Kind they are looking for.
VW is the largest sausage manufacturer in Germany as well.
This could have major repercussions in the sausage world, the after shocks of this scandal could spread to other chopped pork products, pork pies, scotch eggs.
Who knows how far down this rabbit hole goes?
I cant claim to knowing because of my extensive knowledge of VW, it was on Q.I once.
Hate QI. Shares are down another 5% today and testing the €100 resistance level. Do wonder if a lot of programmed traders will buy in at this point. Will be interesting to see.
http://www.google.co.uk/finance?q=FRA:VOW&ei=QngOVvCkLcSYUPLYlIgG
http://www.google.co.uk/finance?q=FRA:VOW&ei=QngOVvCkLcSYUPLYlIgG
ssshhhhhhh dont mention the rabbit
What amazes me is that they thought they could get away with it. Too many people at Bosch and VW must have known about it for it not to leak eventually even if nobody noticed the detuning code itself. And one would have to assume that this should result in criminal prosecution since it is both defrauding the customers and VW's shareholders.
Could have had their shares at 99 a couple of days ago. Should have topped up. Currently trading back at over 114 as the new CEO announces things the market likes to hear:
- All cars to be recalled, all they need is a software update (yeah right)
- There will be many job losses to cover the costs that this scandal will incur.
I was chatting to someone about emissions. Turns out you can drive a high emitting car in my state (Maryland) as long as you pay a fine. My guess is VW will end up paying a lot of fines, around $400 a year per car, I believe.
Volkswagen - a trabeable share now?
It's trading at over 120 now having been as low as 95 THIS WEEK ALONE!
25% gain on your investment was possible this week. Mental.
No, I didn't.
It's trading at over 120 now having been as low as 95 THIS WEEK ALONE!
25% gain on your investment was possible this week. Mental.
No, I didn't.
Over 125 now.
She's really motoring now!
131
131
@Jippy what did you get in at?