VW has already appointed a new chief executive and chairman since the scandal broke. “But for those items we provisioned for today it is very legitimate and right to have them tax-deductible”.
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“That Volkswagen now finds itself in this current situation is something that a few might say is not so surprising”, said Yngve Slyngstad, the CEO of Norway’s wealth fund which owns a stake in VW and has been a critic of its corporate governance.
Volkswagen made a profit of almost €3 billion, more than $3 billion, past year during the same period. Volkswagen, which was tumbling on concerns about a slowdown in China even before the crisis, has lost more than 20 billion euros in market value since the scandal became public on September 18. “But a few financial analysts predict the scandal could cost the German automaker a lot more”.
In addition to those cost, the scandal has wiped 21 billion from VW’s appear value, which is obviously worrisome to potential investors.
A senior official at the Department for Transport said the Serious Fraud Office (SFO) is assessing whether to launch an investigation against VW.
That was still better than analysts had expected: according to Factset, consensus forecasts had put the anticipated net loss at 2.11 billion euros. A few estimates have placed the total cost to undo the cheat’s damage at close to $100 billion.
The so-called defeat device software was discovered in a University of West Virginia lab in September after a group of researchers tested several Volkswagen diesel engines.
The shares rose 3.3 per cent to €108.6 in Frankfurt. By the middle of next year, he’ll draft a plan through 2025, saying Europe’s largest carmaker can no longer be “steered by yesterday’s principles and structures”.
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But “at the EPA, there was criticism about cooperation with Volkswagen these past few months”, he said, adding that the annoyance was clearly discernible and that it would take “considerable work” to rebuild a breach of trust.
