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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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  #41 (permalink)
Legendary Market Wizard
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Audi is announcing that 2,1 million vehicules worldwide have the same motor with
fraudulent software:
1,6l and 2l are to find in the models A1, A3, A4, A6, the sport TT as well as Q3 und Q5.

In western Europe 1,2 million are found.
In Germany 550 thousand.

It took now a week to find that out - what a perfect database

GFIs1

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  #42 (permalink)
Legendary Market Wizard
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The connection of free VW (and connected) importers in Switzerland -
(Verband freier Autohandel (VFAS) are starting to sue VW.
These importers have now 1000 vehicules in stock - but can NOT
sell them anymore.
They say that it takes months until VW even starts to change the
software on all 180 thousand vehicules in Switzerland.
And by then the new cars in stock are no longer to sell...

Well - if that starts even little here - the big wave is right behind.
For sure

GFIs1

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  #43 (permalink)
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The prosecutor of Braunschweig (Germany) has started an investigation against
former VW chief Winterkorn today.
The prosecution is about fraud in case of millions manipulated motors (software) built in
cars of VW, Audi, Seat, Skoda and some more brands sold worldwide.

Things are evolving parallel...

GFIs1

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  #44 (permalink)
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I am afraid the issue is more political and moral, it's not about VW but rather about Germany and its reputation as the strongest and cleanest economy in EU, damage is done and the PIIGS have one more argument in their defence, while the whole EU car industry is once again in backwardation.

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  #45 (permalink)
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redratsal View Post
I am afraid the issue is more political and moral, it's not about VW but rather about Germany and its reputation as the strongest and cleanest economy in EU, damage is done and the PIIGS have one more argument in their defence, while the whole EU car industry is once again in backwardation.

VW brand had been marketed to bring "the cleanest diesel technology" to clients around the world - right?
And what they did:
1) they started to bypass the tests since 2007... (!)
2) betraying clients, selling chain, countries, nature etc in many countries around the world...
3) have been alerted several times from experts that something has to be wrong with the tests
4) NO reaction from the management
5) but management wants first more money and has NO emergency plan
6) the consequences are coming and will be most painful NOW
the most expensive payments will be for punitive damages (US law) for the measly 500k vehicules

Sad for a good brand to be taken into the mud willingly by the management over the last 10 years.
I see no good in the taken strategy.
Markets and some judges will finally tell how VW's future will look like.
Good luck

GFIs1

PS: the scandal is not that one of the most important german industrial giants has cheated -
but that they could do it since 2007 without being nailed selling fraudulent products in large size...

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  #46 (permalink)
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After known numbers of manipulated diesel cars of VW group
this evening came out the number of VW daughter Skoda:

1,2 million vehicules worldwide are affected

GFIs1

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  #47 (permalink)
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This is a problem for the reputation of the entire German auto industry, not just for Volkswagen.
GM, the owner of Opel, may get dragged into this.


Quoting 
As it turns out, Volkswagen may not be the only carmaker that sold diesel-powered cars which exceeded allowed emissions levels.

A report from Transport & Environment drops the bomb, claiming more carmakers sell vehicles which exceed the European limit for air pollution.

During the past three years, Transport & Environment (T&E), with the support of the International Council on Clean Transportation (ICCT – the organization that alerted US authorities to its concerns over VW), has exposed several ways carmakers manipulate emissions tests in Europe for both air pollution and CO2 emissions.

Diesel BMW, Mercedes, Opel, PSA Cars Suspected Of Manipulating Emissions Tests Too [Updated]

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  #48 (permalink)
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GFIs1 View Post
After known numbers of manipulated diesel cars of VW group
this evening came out the number of VW daughter Skoda:

1,2 million vehicules worldwide are affected

GFIs1

Due to the magnitude of the numbers (multiplication) this becomes more and more a monster problem

Q1 : Is it "easy" to bring one of those cars in compliance ?
Having cheating software is one thing.
Disabling this software is another thing. (reflashing).
How can a car be made compliant (reduce to reasonable pollution)
What is the cost per car

Q2 : The outlook for VW as a group must look very ugly ..
the cash flow will stop brutally
provisions need to be made
banks will revisit credit lines
cost of credit soars

legal departments will run over-drive time

still my initial questions holds, what will be the impact on the German Economy
and as an 'engine' behind the EU economy what is the impact ?
taking into account that export (cars) is an important pillar ...

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rleplae View Post
still my initial questions holds, what will be the impact on the German Economy
and as an 'engine' behind the EU economy what is the impact ?
taking into account that export (cars) is an important pillar ...

Things will get worse before better. Then at some point the government will step in as a hard backstop to protect the jobs, and in 10 years all will be forgotten...

My thoughts..

Mike

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  #50 (permalink)
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rleplae View Post
Due to the magnitude of the numbers (multiplication) this becomes more and more a monster problem

Q1 : Is it "easy" to bring one of those cars in compliance ?
Having cheating software is one thing.
Disabling this software is another thing. (reflashing).
How can a car be made compliant (reduce to reasonable pollution)
What is the cost per car

The FRAUD does not disappear while installing new software over the old one:
Simple clients bought these cars understanding that they are "Best Of Technology",
using 3,5l diesel per 100km and will be best for nature ;-)
If VW is putting the original "cleaning" back to work - the same car uses
suddenly 6 to 7 l diesel per 100km and is much less powerful than seen in
prospects.
All the good numbers evaporate - every client feels cheated again!

GFIs1

PS: Cost of 1l diesel in Switzerland today is $1.70
If your car needs 7l /100km instead of 3,5 (as shown in prospect) - your calculation
for driving will be most different.

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