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Thursday 8 December 2016

Volkswagen scandal: More bad news as investors plan to steer clear of firm over next six months

Published 29/09/2015 | 12:46

Volkswagen was the most popular make for new private cars last month
Volkswagen was the most popular make for new private cars last month
SCANDAL: Martin Winterkorn resigned as Volkswagen CEO as a consequence of the emissions cheating scandal that has sparked a US criminal investigation and worldwide legal action

A survey of 62 institutional investors by Evercore ISI shows that two out of three believe it will not be possible to invest in Volkswagen over the next half year if the financial risks linked to its emissions scandal remain unclear.

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"Sixty-six percent of investors responded that it is not possible to invest in VW over the next 6 months if costs, fines, legal and criminal proceedings are outstanding or inadequately quantified," Evercore analyst Arndt Ellinghorst wrote in a research note.

The survey, published on Tuesday, also showed that 76 percent of investors believe that VW should spin off its trucks business, while 62 percent said the ocmpany had too many brands, suggesting the group needs streamlining.

Evercore did not make clear in its note when the survey was conducted and was not immediately available to comment on the timing.

Reuters

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