Volkswagen stock plunges 17% after US emissions cheat scandal
Source: Bloomberg
Volkswagen AG dropped the most in almost seven years after it admitted to cheating on U.S. air pollution tests for years, risking billions in potential fines and a backlash from consumers in the world’s second-biggest car market.
The shares declined as much as 17 percent, or 27.9 euros, to 134.5 euros in Frankfurt, the most since Nov. 3, 2008. The drop extends the slump for the year to 25 percent, valuing the Wolfsburg, Germany-based company at 65.3 billion euros ($73.9 billion). The stock traded at 137.8 euros at 9:34 a.m. in Frankfurt.
Volkswagen Chief Executive Officer Martin Winterkorn said on Sunday that the company is cooperating with the probe and ordered its own external investigation into the issue. The CEO said he was “deeply sorry” for breaking the public’s trust. VW has halted sales of the car models involved, which were a cornerstone of Winterkorn’s effort to catch up in the U.S. The violations, which affect nearly half a million vehicles, could result in as much as $18 billion in fines. Criminal prosecution is also possible.
“If this ends up having been structural fraud, the top management in Wolfsburg may have to bear the consequences,” said Sascha Gommel, a Frankfurt-based analyst for Commerzbank AG, whose share rating is under review.
Read more: http://www.bloomberg.com/news/articles/2015-09-21/volkswagen-drops-15-after-admitting-u-s-diesel-emissions-cheat
= new reply since forum marked as read
