VW in big trouble

In the good old days one could, in South Australia, present a prima facie defence if charged with exceeding the speed limit. I think it was not only before TV, but possibly existed prior to the penny post - when ships were "green", being propelled by the wind.
Seems as though it was at a time when both you and I were still young, RB?
I wonder ... maybe we should get back to the VW thread we had here - otherwise start one titled Speed Limits...
 
I was going to say this thread went off on a tangent...

Bringing it back on topic, share price crashing at this very moment EUR 86.36... Lowest as far as I can see...

I wonder where the bottom of the barrel will be?!?
 
Truly impressive: not all that different to my Santos shares of late...
 

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As I originally said, Pedro, this has the ability to bankrupt VW ... 750,000 employees worldwide. Largest car maker in the world.

So big that it could damage the world's entire economy.

It's very ugly, and more than a little scary!
 
Ratbag said:
As I originally said, Pedro, this has the ability to bankrupt VW ... 750,000 employees worldwide. Largest car maker in the world.

So big that it could damage the world's entire economy.

It's very ugly, and more than a little scary!
Click to expand...

I don't think it will bankrupt them... Look at all the US car makers that got dragged through the proverbial and came out the other site of the GFC...

Fortunes were made on GM shares from less than $3 buying price in November 2008 to a top around $39 as early as Jan 2011.

I'm keeping a keen eye on good old VW!
 
Wasn't it the US taxpayer (or at least those who did actually pay tax) who bailed out GM?
 
Right. I do not think that EU bankruptcy laws allow the same type of re-organization. Nor do I think that the US will go for maximum possible fines or that Germany will let VW go under.

I am intrigued about the perspective of getting some shares at the right time. If I had money to invest, I would have made a lot on airline stock during the latest crisis of that industry.
 
MiddleAgeSubie said:
Right. I do not think that EU bankruptcy laws allow the same type of re-organization. Nor do I think that the US will go for maximum possible fines or that Germany will let VW go under.

I am intrigued about the perspective of getting some shares at the right time. If I had money to invest, I would have made a lot on airline stock during the latest crisis of that industry.
Click to expand...

Germany and the rest of the EU have been saving Greece over and over again so that they maintain the regional status quo economy-wise. I would bet that they will do the same to VW and the compounding jobs at stake. Why wouldn't they? They are already forking out a heap of money on refugees, the last thing they need is another 750,000 people on the dole...

And all this because some faceless men decided to cheat... Amazing stuff!
 
I can't really see that this is going to put them under for too long.

Essentially, VW's Diesel are only 25% of their sales.
Putting it back into perspective of the actual affected models is something like 6-8% of their line up.

there's going to be some ramifications on a dollars level, yes, fines, a board shake-up, etc, but the grunt of manufacturing and sales will still happen, people will still buy VAG-Group vehicles for their build, and it could even be the kick in the donkey that the company needs.
Really, I feel they've become a little complacent and just resting on their reputation.
Now that's shot to pieces, they might look at investing in new tech, more ERS Systems, etc and becoming innovators again.
Push to compete with Tesla on electric.

Hard times to come, but possibly for the betterment of the entire industry.
 
Headline in my professional association email today:


"Has unethical behaviour tarnished the Volkswagen brand forever?

VW’s unethical behaviour required intentional deception by a large number of people. That points to a deep failure of culture and values and as a result one of the world’s most trusted brands has been tainted. How and why did this happen?"

Fair statement and question indeed.
 
Well, share price says not really... It's up around EUR125.00 - that's a 40 Euro gain from a starting point of 86, so close to 50% gain in about 2 months? Not bad at all!!
 
^ that makes the share price roughly half of what it was 6-8 months ago, Pedro ...
 
The penalties and actual related losses will not be known for quite some time. Unless you assume, Pedro, that the market has already correctly gauged and factored in those future numbers, it is hardly time to buy....
 
^I think the immediate correction has been done... It essentially puts the stock back to 2011 prices, so 4-5 years lost...

I wouldn't buy them now... I would have when they were at 90 bucks...

Share price is certainly not everything, but a good indicator with this behaviour that the company is not going under.

Consumer confidence will take much, much longer to be recovered. But they'll get there. Won't be Number 1 auto maker of the world for a while, though.

And Ratbag, the share price was only over 200 bucks from Feb to Jun this year, so - although technically correct - a bit of a stretch to say it is at half what it was worth...
 
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