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VW scandal and impact on German economy


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VW scandal and impact on German economy

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  #401 (permalink)
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JohnS View Post
Impact on German economy: I live in Bamberg and Bosch has a 7500 employees here producing components for combustion engines including 4000 workers producing diesel pumps and injectors. This past April, thousands of Bosch workers protested the climate policies, ie anti diesel policies. Here is an article about the situation , it’s in german so google translate: https://www.google.de/amp/s/www.br.de/nachrichten/amp/bayern/bosch-mitarbeiter-demonstrieren-in-bamberg,RMeCrhc

The impact: Over past year, 100 shifts were reduced because of reduced diesel demand. over the next 10 year half the diesel work force may be reduced so that will have s real impact on the local economy.

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Hi JohnS
Thanks for the article - it is a every week process of people fearing to lose the job. I tell you it will be much more worse: They will! The German car makers made billions every year without changing technology to cleaner models. They made billions by shouting out worldwide to have a "clean Diesel" - which was the largest fraud in Germany since WWII. The politicians of Germany were singing along the path - and never heard the big "bang". So are today's sentences of "change" quite laughable and at least 25 years too late.
Have a look at the latest sentences from German courts against VW, Porsche, Daimler - the thing looks not bright for Diesel makers. But they still show more new "muscle cars"... As always?
Then have look on German streets and highways - a pain! And the car makers want to put more one man heavy vehicles on their way. We just can admit that: there is NO way: even the e-scooter on bus lanes - propaganda from Minister Scheuer - will not omit any chaos. No solutions from Germany - no money to gain in the future - that easy.
I just can say - even I am an optimist - this fall the German industry will be really at the edge. If I were young I would never get into this business. Today's jobs are in climate industry.
What it means for our DAX traders: be aware to see much lower prices before mid year 2020. Recession ahead.

GFIs1

Actual court results here (German): https://www.test.de/Abgasskandal-4918330-5092247/
More of those to come

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  #402 (permalink)
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South Korea wants to revoke the import license for Volkswagen, Audi and Porsche diesel cars due to the installation of banned exhaust software. In addition, the Ministry of the Environment announced that it would impose fines in the millions on Audi Volkswagen Korea and Porsche Korea and file criminal charges with the public prosecutor's office. Prohibited software for emission control had been found on three Audi models and one VW and one Porsche model each. Audi and Porsche also belong to the Volkswagen group.

Audi Volkswagen would face a fine of 7.9 billion won (5.9 million euros), Porsche four billion won. In total, more than 10,200 cars are affected, including 6,656 from Audi alone, which were sold between May 2015 and January 2018. The models will no longer be sold in South Korea.

It is about the models A6 40 TDI, A6 50 TDI and A7 50 TDI from Audi, two types of the VW Touareg and one of the Porsche Cayenne. In September 2015, VW had admitted that it had equipped around eleven million diesel vehicles worldwide with software for manipulating exhaust emission values.

Just to make it clear: the Asian markets which are most important for VW with several production plants in different asian countries will be in danger with those news...

The investor in VW stocks is now in the eye of the hurricane.

Source: German news channel n-tv.de, translated into english

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Today it was announced that Daimler accepted a large fine for a defeat device in recent high class diesel limousines:

"The public prosecutor's office in Stuttgart has issued a fine of 870 million euros in the course of the diesel scandal against the car manufacturer Daimler. According to the public prosecutor's office, the reason is a negligent violation of the duty of supervision in a department concerned with vehicle certification."

According to a source Daimler will pay within 6 weeks the total sum to Baden Württemberg / Germany

diff. sources from German Newspapers today - translated

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It is about the top VW managers Winterkorn, Diess and Poetsch.

"The public prosecutor's office in Braunschweig brought three charges on Tuesday: against VW CEO Herbert Diess, his predecessor Martin Winterkorn and the Chairman of the Supervisory Board and former CFO Hans Dieter Pötsch. The three top managers were accused of having informed their shareholders far too late about the diesel scandal and the threat of billions in fines, with the intention of avoiding or at least delaying a fall in the share price. If this is the case, then the offence of "deliberate market manipulation", which is punishable by law with up to five years imprisonment, would be committed."

Translated from different german newspapers

Looks so that those persons no longer can travel abroad.
To be clear - all 3 still deny to have done any wrong decision in the past.
Of course all their decisions led to the immediate strong down of VW stocks in all of the stock markets

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DETROIT (awp international) - In the exhaust scandal of the car manufacturer Fiat Chrysler for the first time an accused manager of US prosecutors was arrested. The man is accused of being part of a conspiracy to deceive authorities, customers and the public about the true emissions of diesel cars. This is apparent from Tuesday's court documents.
From marketscreener

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  #406 (permalink)
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Yesterday some news (internally long known) came out that DAIMLER has implemented a forbidden defeat device in cars with motor OM651 which are installed in GLK models as well as in the larger Sprinter delivery vans.

Translation from German "Der Spiegel" yesterday:
"According to the authorities ("KBA = Kraftfahrbundesamt"), Daimler has used an inadmissible exhaust technology in hundreds of thousands of other diesel vehicles. The Federal Motor Transport Authority (KBA) issued a corresponding recall notice, Daimler announced on Friday evening. According to the information, an average six-digit number of Mercedes-Benz vehicles in Europe equipped with the somewhat older Euro 5 diesel engine with the designation OM651 are probably affected."

Even Daimler wanted to "cooperate" it looks no good for a premium carmaker who said always never had been cheating...
Those cars burning fuel have ended anyway - just the German carmakers are squeezing out any € as long they can.

It is a fact that the exportation from Germany to the world came down extremely last month. Of course that industry will have strong disadvantages when the do not follow known industry rules they had made ok in the past.

Impact:
What it means is a strong uncertainty for investors into German car makers in next time. Other world carmakers have already well selling models without combustion motors in the channel.

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Saw this on Twitter today... Not a pretty picture for VW



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Thanks @SMCJB

Here some more details about the actual "spending" for the greatest scammers in Germany's companies. LOL
Translated from German Newspaper FOCUS:

Saturday, 30 April, 10.39 a.m.: In addition to their millions in salaries, the members of the Board of Management of the VW Group also receive substantial additional retirement benefits - just like top managers of other companies. While the annual payments from the active time of the board members are often the subject of public criticism, pension benefits are hardly the focus of attention. But they also have a lot to offer: the VW Group has set aside almost a quarter of a billion euros (243 million euros) for retired members of the Board of Management as of 2015, as the latest balance sheet shows.

The pension alone for Martin Winterkorn, the Group boss who resigned due to the diesel scandal, had a cash value of 28.6 million euros at the end of 2015. In its latest issue, "Der Spiegel" reports that Volkswagen guarantees its board members more pensions than any other DAX company. According to the Hamburg magazine, there are six representatives of the VW Group among the ten managers with the highest pension commitments in the German Dax top league.

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" Volkswagen plans to build its new Southeast Europe plant in Manisa near Izmir, Turkey. After the invasion of Northern Syria by Turkish troops, the project could still be shaky. A VW spokesman told SPIEGEL that the project was currently in the "final phase" of planning, but that the development in Northern Syria was being observed "very closely and with great concern". First the "Frankfurter Allgemeine Zeitung" had reported about it.

After a long search and tough negotiations in Turkey, the group intends to manufacture the Passat and Skoda Superb in the future, primarily for export to Eastern Europe. The estimated investment volume is expected to be up to 1.5 billion euros. At the end of August, the VW supervisory board had already made a fundamental decision for the new plant in western Anatolia.

Up to 300,000 vehicles could be produced in Turkey."

So this new 1,5 billion investment might be harshly stopped... Of course a nonsense to get into risk as long Erdowan is rambling around.

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From a German newspaper (translated):

"According to an N-TV report, the Australian federal judge Lindsay Forster described a settlement negotiated with the local consumer protection authority according to which VW would pay a total of 75 million Australian dollars (almost 50 million euros, i.e. around 750 dollars per car) because of the approximately 100,000 scandalous cars delivered to Australia as "outrageous". This is far from sufficient. Normally such settlements pass through the courts in Australia without a hitch. Forster, however, announced that he would not approve the settlement. Above all, he considered it outrageous that VW was not prepared to make an admission of guilt. VW had asserted that 75 million Australian dollars was a lot of money. In addition, the company had to pay about the same amount for the cars there. Forster opposed this: The fraud at Volkswagen exceeded every measure in terms of the scope, consequences and deliberateness of the infringement. An organization as large and powerful as Volkswagen should not get away with it so cheaply."

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