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According to Bloomberg EPA's New Volkswagen Probe May Reveal Failure to Disclose - Bloomberg Business
another Defeat Device is under investigation by EPA in USA!
This device has been used in cars of different years. The working pattern is not known.
The result so far is that the 2016 diesel models in USA do not have a certification yet.
If the new found device is also fraudulent then the scandal will go into a new round.
If this is true for US cars then the big rest of the 11 million in Europe will have the same problem...
As a result VW brand needs to save money now and has cancelled the project of the new Phaeton immediately.
As well some budgets for public relations and some high donations to sports clubs are affected.
Hoyer of European Investment Bank EIB said:
“If we determine that the loans that we have extended to drive engine developments have not contributed to combating climate change, but have possibly done the contrary, then that is a reputational problem also for us,” he said. Hoyer suggested that the bank was unlikely to request the loans be repaid, saying it had no interest in seeking to “wreck” the company."
The outstanding sum given to VW since 1990 sums up to 1,8 billion EUR.
As VW has a lot of cash and set already a sum aside for the cases on the line
they could in such case try to get out of the debts first. If the costs of those
would rise...
But a downgrade will have immediate negative impact on the stocks...
And for new debts of course - if there are any to be made.
As mentioned in an article (earlier in the thread) VW has around 80 billion with all daughter companies
and brands before going broke. They set aside 7,5 billion for the cases in next quarter. 20 billion in cash will be
enough to handle the EIB debt.
For sure the unsold cars, the reparations and the eventually unsolved problems on older cars will be
a heavy burden and the long uncounted fights on the courts are most unpredictable.
This can be the death for a large dinosaur like VW.
On a 'lighter note', Leonardo DiCaprio is going to produce a film about the VW scandal, Paramount and Appian Way (owned by DiCaprio) bought the rights to the book that Jack Ewing is going to write... Actors and producer not yet known
