Reuters Insider - Emissions scandal drives VW into loss

Baader Bank AG

28/10/2015 17:37

Click the following link to watch video:                              
 https://insider.thomsonreuters.com/link.html?cn=share&cid=1508214&shareToken=MzoyYzI4ZjlhOC0zMTdhLTQ1OGQtYTYxYS1mYzE5YTNmNDliNTg%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Volkswagen has posted its first quarterly loss in 
                     at least 15 years. As Tim Graham reports it's been 
                     slammed by costs related to its rigging of diesel 
                     emissions tests and lowers profit outlook.        
 
 
(To access all exclusive Reuters Insider programming visit: http://insider.thomsonreuters.com) 
 
 Short Link:  http://reut.rs/1kRQdL5  
 
 
Transcript (May be auto-generated)

                 There's no denying 2015 has been a tough year for Volkswagen. The emissions 
scandal has forced out its CEO, wiped more than a quarter off its stock market 
value, and tarnished its brand. Now, the carmaker has posted its first quarterly
loss in at least 15 years. Despite that, the company's shares rose on Germany's 
DAX index. Robert Halver is with Baader Bank. VW shares gained for two reasons: 
first, we now know that they set aside EUR6.7 billion. What's much more 
important, though, is that VW is saying its 2015 outlook is unchanged as far as 
revenue and profit goes. That's enough to make the share go up. 

Volkswagen's third-quarter operating loss was EUR3.48 billion. The company's new
CEO says his strategy is to focus on profitability. But it isn't the only 
carmaker who should be worried, says CMC's Jasper Lawler. The whole sector is 
struggling a little bit, just largely because of the slowdown in China, which 
has been a booming market for them. And so they're projecting that full-year 
revenues are going to match the previous years so really no sales growth, as 
well as the scandal on top. Volkswagen has so far set aside EUR6.7 billion to 
pay for the scandal. That's expected to rise. But for now, the regulatory 
fallout is only just beginning. The European Parliament the latest to vote in 
favor of tough new vehicle testing, and early results of investigations into 
what went wrong