Yii-haaa, this is my first report for VW which stems form that I bought them sometime after the Q2 report had been published and the name of the CEO was then still Winterkorn and everyone considered VW to be an excellent German automotive brand... well... that has changed and the share price also...
To read the report in full please go here and to find out more regarding VW then please visit analysis of VW 2015.
Below is the key figures for VW. As one could have expected the values looks excellent besides from that little -6.8 billion € notification. Two things must never be forgotten. Destroyed brand value takes time! We will not see something this quarter or the next but it will remain in the mind of people that buying a VW is bad for the environment so I better buy something else. Secondly we should nto forget that the -6.8 billion will be far from what will actually be needed so there will be more happy, happy, joy, joy to come. VW does however contain many brands and in the worst case scenario they would have to take some of them public via IPOs a la Ferrari that happened recently.
Conclusion: We have started to have a taste of the costs for VW but we are far away from knowing the real figures. My biggest fear is the brand and I hope that VW keeps a strong separation between their different brands so that a lost sale of a VW can be "countered" by a sale of an Audi, Skoda or whatever. I will remain shareholder in VW but I will be grumpy. I must admit that I am pleased with how active the new CEO have been in bringing out the trash as it also must be done when these things appear. As a perfect opposite example we can look at DB. No one brought out the trash because the CEOs were part of the trash... status quo remained for six long years with no earnings, no changes, no one got fired. Now also in DB the trash has start to be brought out...
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