Volkswagen is engulfed in crisis after U.S authorities found VW’s cars fitted with software that allowed the cars to cheat emissions test. The vehicles were emitting pollutants at levels many times higher than branded.
Advertisement
Herbert Diess, chief executive of the passenger cars division, also said VW will delay the launch of a diesel vehicle in Japan. The software was installed in 11 million diesel vehicles manufactured by the company.
We have a $36 price estimate for Volkswagen, which is above the current market price.
In global vehicle sales, a closely watched indicator for a carmaker’s resonance with customers worldwide, VW had come out No 1 in the first half of this year, beating Toyota. That is expected to take until the end of the year to complete. During his visit to the company’s stall at the show to unveil a hybrid SUV, Diess admitted that VW had committed a wrong and the company would make sure that such things do not happen in future. The company has set aside €6.7 billion in attempt to rectify automobiles recalled in the company’s diesel mission scandal. The company’s stock is up 1.9% on the day. This has resulted in Toyota overtaking Volkswagen as the world’s largest automaker.
Advertisement
Volkswagen mentioned that it expects net income to be significantly down for the full year, owing to more costs related to the emission scandal. This might be a blessing in disguise since the brand needed a structural overhaul even before the scandal broke out. But after the first three quarters, Toyota was again on top. In China, the group’s volumes have declined 5.2% year-over-year through September, and although a few of this is due to the general tepid economic environment in the country, the German automaker has fared even worse than the overall market.
