Volkswagen Scandal

Discussion in 'General Trading Discussion' started by SteakTartare, Sep 22, 2015.

  1. baudwalk

    baudwalk Senior Investor

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    Japan, South Korea, and the EU as a whole are additionally into the investigation business. No doubt there will be more to come. Daniel Carder, of West Virginia University, discovered (http://www.cnbc.com/2015/09/23/meet-the-man-who-uncovered-volkswagens-lie.html ) the emissions abnormalities and weighed in on the matter (http://www.cnbc.com/2015/09/24/man-who-found-vw-errors-weighs-in-on-scandal.html). VW stonewalled for a year (http://www.cnbc.com/2015/09/24/how-volkswagen-fought-epa-on-emissions-cheating-claims.html) before coming clean. BMW is a likely target to see if the contagion has spread. (http://www.cnbc.com/2015/09/24/bmw-shares-slip-on-report-of-high-emission-levels.html).

    Let the games begin.

    A new Board Chairman is expected to be appointed today (Friday).

    As an aside, I wonder if diesel will remain a significant proportion of motor vehicle sales. (Yes, I know the over-the-road tractor-trailer rigs primarily use diesel.) Around here i saw a number of service statoons selling regular gasoline for $1.839, an incredibly low price. The hybrid and elecric cars are making inroads into the market share, but not for me.
     
  2. pwarbi

    pwarbi Senior Investor

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    The thing is I'd be very surprised if it was just Volkswagen that was guilty and not the whole of the motor industry that's guilty of deceiving the public when it comes to emissions and MPG rates.

    To help sell vehicles it's a well known fact that motor companies go to very low levels when quoting certain figures, in order to get an edge on the competition, this goes a lot deeper than just Volkswagen, it's just them that's been caught.
     
  3. Sunflogun

    Sunflogun Well-Known Member

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    One thing I've heard today is that other companies are using the same scheme to deceive inspections and so on. Amazing how Volkswagen did something like this.
     
  4. Penny

    Penny Well-Known Member

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    Well, I have heard there is very good reason to be suspicious that other companies are doing the same thing. And it is true tat raod testing did not chow VW disparities from controlled EPA tests were noticeably worse than for other manufacturers.

    But until someone actually find the code that is not a proven fact.
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    I too am surprised that this happened to VW out of all the possibilities. In general they are well known for good quality... in fact we also have 1 VW in the family. Then again it's just emissions, nothing severe such as some fault that would endanger the driver/passengers.
     
  6. ScooterBrandon

    ScooterBrandon Senior Investor

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    That's what I was thinking.
    Except when I came across this little article.
    http://www.euronews.com/2015/09/22/...ewed-up-as-emissions-rigging-scandal-spreads/
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Yeah, pending litigation always makes me wary. I like to buy good companies when they get oversold, but I get nervous when Legalman becomes involved.
     
  8. 111kg

    111kg Guest

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    Just wanted to share this:
    [​IMG]
     
  9. Steve Dawson

    Steve Dawson Active Member

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    Its not a good time to have money in VW no doubt, but, even taking into consideration the scale of this scandal, and the upcoming litigation, I can't see them going under. They are too well established. They've now lost a top man who has been pushed into the limelight and they will probably lose more before this is over. The think the German government is pretty mad at them for bringing the normally spotless national car industry into disrepute, and no doubt other car manufacturers in Germany will be fuming at the potential knock-on effect to them as well. They'll whether the storm and eventually recover, but it'll take years for them to regain the trusted position that they've just lost.
     
  10. Susimi

    Susimi Senior Investor

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    The chance of them going under is slim to non I think. VW are part of a major group that has some well established players in it.

    The way this will effect them, well I think the saying a drop in the ocean is pretty accurate. It will have a hit on the company and the VAG group but it will be so small it will almost be marginal.
     

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