“Allowing auto manufacturers to completely disregard vehicle standards for another five years is bad news for our environment and for consumer trust in European vehicle brands”, said Gerben-Jan Gerbrandy, a European Parliament member for the liberal ALDE group.
Advertisement
“The fiscal burden is tremendous but manageable… but we’ll emerge stronger and more slender than in the past”. Mueller said a few of the goals from the earlier plan – profitability and customer satisfaction – were more important than ever.
During tests, the Volkswagen diesel engines with illegal software make full use of pollution controls and can pass emissions tests.
VW says the legal costs of the scandal “cannot be estimated at the current time”.
Bloomberg/Getty Images So far, the costs of the scandal are largely related to the refitting of affected vehicles.
Volkswagen already had announced the set-asides for the recalls, so market analysts expected the quarterly loss, the company’s first in over a decade.
In the three months to the end of September, vehicle sales fell 3.7% and production fell 11.6% compared with the same period a year ago. They plunged as much as 38% in the weeks after the scandal broke in late September, but have since bounced back – helped by evidence that the impact on sales has been limited, and a broad rally across German markets. “As a outcome, corresponding provisions have not been recognized in the interim financial statements”.
Investors shrugged off the results and Volkswagen stock surged 4 per cent yesterday on the German stock exchange.
Matthias Muller-who was promoted to CEO following the resignation of former-executive Martin Winterkorn, who stepped after the Environmental Protection Agency busted VW for emissions tampering-outlined his plan for moving past the so-called “Dieselgate” scandal on Wednesday.
Volkswagen sold a 19.9 percent stake in Suzuki, bringing net cash and liquid assets to roughly $30 billion.
Analysts estimate that the final cost to the company could run to tens of billions of euros.
“The Volkswagen group has very solid and robust liquidity resources”. The shares rose 3.3 per cent to €108.6 in Frankfurt.
Volkswagen Group is a sprawling, global company with a number of local and regional brands; depending on just how deep this scandal cuts, it’s possible that Müller’s organization could need to drop poorly performing brands entirely, as General Motors did as it went through bankruptcy in 2009.
Advertisement
What happened with Volkswagen this quarterAll of VW’s results are overshadowed by the emissions scandal.
