Volkswagen shares are PLUNGING again
Volkswagen shares are getting hammered again on Wednesday, the third day running. They're down by more than 7% at the market open after losing more than a third of their value in two days.
Investing
Investors are shunning VW shares because of uncertainty.
Here's what Tim Rokossa and the analysts at Deutsche Bank have to say about it:
After VW lost c. €30bn of its market value in 2 days, it might strike as a buying opportunity. However, we stress that the full magnitude of the emission scandal is likely to remain uncertain for much longer. So far we conclude that 1) the legal fines will be painful, impossible to quantify and potentially remain a topic for years.
Tuesday was full of drama.
CEO Michael Winterkorn was forced to make a statement saying he was staying at the company after German press reports affirmed he would be replaced by the end of the week.
VW said that up to 11 million cars worldwide were affected by the scandal, far more than the half a million the company said were affected on Friday.
It issued a profit warning setting aside €6.5 billion (£4.70 billion, $7.27 billion) to "cover the necessary service measures and other efforts to win back the trust of our customers." It adds: "discrepancies relate to vehicles with Type EA 189 engines, involving some 11 million vehicles worldwide."
Just to recap what the emissions scandal is about: US regulators found that software the carmaker designed for diesel cars gave false emissions data. VW faces fines of up to $18 billion (£11.6 billion), the Environmental Protection Agency said on Friday.
- I'm an interior designer. Here are 10 things in your living room you should get rid of.
- A software engineer shares the résumé he's used since college that got him a $500,000 job at Meta — plus offers at TikTok and LinkedIn
- Higher-paid employees looking for work are having a tough time, and it could be a sign of a shift in the workplace
- Stay healthy and hydrated: 10 immunity-boosting fruit-based lemonades
- Here’s what you can do to recover after eating oily food
- AMD set to fuel growing demand for AI compute, says CTO
- Sensex tumbles 700 points amid broad-based selloff; Nifty slips from record
- Global smartphone shipments grow by 6% in Q1 2024, Samsung retakes the top spot