For Volkswagen’s shareholders and the car manufacturing industry as a whole, it seems that the alarming case of emissions manipulation may be far from over. Volkswagen, who manufactures car brands including the illustrious Bugatti and Lamborghini, has been accused by U.S. environmental officials today of equipping more models with the software at the heart of the cheating scandal.
Shares have been gradually declining since their March high of 255 and of course plummeted after the initial reports were released, but had started to make a slow comeback since October 2nd when they were at just 92 pence. However today’s fresh allegations are sure to cause further instability and values have fallen over 3% in midday trading today already. Just how much more damage is yet to come remains to be seen but the only winners from this appear to be the Spreadbetting review (http://reviews.spreadbetting) sites and FX companies where the volatility is likely to be landing them and a few select customers with large paydays.
So just what can VW do to try and suppress this latest charge? With their former CEO Martin Winterkorn already forced to resign in September and with Matthias Mueller taking the reins as interim Chief Executive, he may well have been prepared already for such indictments but this is sure to cause yet more damage to an already tarnished brand. Just 5 weeks ago it was reported that at least 27 separate U.S. state attorneys were launching investigations into its diesel vehicles and even the German Chancellor, Angela Merkel, has been enlisted to try and help repair the damage to the German Automobile industry that had for a long time been seen as the pinnacle of engineering in the modern world.
In terms of a quick fix, it seems that any initial efforts to find one have been unsuccessful and the fallout to both the Volkswagen brand and the entire automobile industry is likely to feel the effects of this for some time. With buyers already starting to turn their backs on Diesel engines earlier this year, as reported by thisismoney (http://www.thisismoney.co.uk/money/cars/article-3030078/Drivers-start-turn-backs-diesel-car-sales-hit-highest-level-century.html), this will be a test of endurance, one that they may never fully recover from.
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