Volkswagen puts brave face on crash into the red

[webfact]

Volkswagen puts brave face on crash into the red



WOLFSBURG: -- Volkswagen plunged into the red in the third quarter, the first such loss for 15 years.

The reason is the 6.7 billion euros set aside to deal with the aftermath of the diesel emissions tests scandal, which broke towards the end of the July to September period.

Despite an overall operating profit for the year so far, and an increase in sales revenue year-on-year, VW acknowledged the “negative” impact of the “diesel issue” in the summary of its latest quarterly report.

From a healthy operating profit of 3.23 billion euros at the same stage last year, VW swung into an almost equivalent loss of 3.48 billion euros.

It accepts the money earmarked to cover costs may just be the start.

In the meantime VW will delay the launch of a diesel car in Japan. At the Tokyo Motor Show the company again apologised.

“Our customers’ confidence and trust is what is most important to us and we are doing everything what we can to win back this trust in our brand and in our great products. We will uncover and disclose the full truth of what happened and we will make sure that something like this never happens again,” said Herbert Diess, CEO of Volkswagen’s Passenger Cars brand.

Almost six weeks since VW admitted using illegal software to cheat diesel emissions tests, Europe’s largest carmaker is under pressure to identify those responsible and still has to fix 11 million affected vehicles.

The loss is broadly in line with analysts’ forecasts. WV said it now expects its operating profit to drop “significantly below” last year’s record 12.7 billion euros.

However the company insists it is financially robust enough to weather the storm.


-- (c) Copyright Euronews 2015-10-29

[Toany]

Their customers confidence and trust was not important to them when they installed the cheat software and sold cars with false performance figures

[konying]

Their customers confidence and trust was not important to them when they installed the cheat software and sold cars with false performance figures

You really think people care? Those who care buy hybrids or electric

[Andaman Al]

I don't think 6.7 Billion will scrape the surface. Seems the board are displaying the same integrity with their shareholders as they did with their customers.

[BKKdreaming]

fixing 10 million cars will take years , the software part is easy , but they are going to need to add some parts,

plus each country will want to approve the fix before its started ,

get ready for a long and bumpy ride

Edited October 29, 2015 by BKKdreaming

[emilymat]

It's all his fault.

[Suradit69]

Hitler.png

It's all his fault.

Gee if some Thai students had made a Hitler joke there'd be a 100 posts claiming Thais are insular & insensitive, that the Thai education system fails to teach them about any history outside of Thailand and that it was the Thais who actually started World War II.

[farangmick]

Well if I was back in England I'd be looking for a cheap A3 or Golf, with the extra 20 or so bhp. Forget the fix.

[thairay]

vw meeting?

top management..we got a problem with the engine,too dirty

design dept..we tried but cannot get it right..

sales dept..how can we sell a bad motor in the car?

IT dept...give us a minute, we got an idea here !!

[BKKdreaming]

Well if I was back in England I'd be looking for a cheap A3 or Golf, with the extra 20 or so bhp. Forget the fix.

the prices have not gone down very much in California, less than 10%

yeah if they went down 50% it would be the deal of the century !

They did PASS all the tests , and I have not seen what the HP and mileage would have been if kept in the "clean" test mode ,

and even the "dirty" numbers are suspect , yes they were higher and that broke the rules ,

but solid numbers of how many times over the limit are not there ,

if at full throttle it is 20x but at cruising 2x then what number do you use ?

The guys that found the hack are an Anti Diesel Group , so of course they are going to use the big number !

[ozyjon]

ha ha

[JetsetBkk]

What a joke this "scandal" is! Why should I care if a VW emits a bit more than it should?

All these greenies and tree-huggers think they have found their nemesis but ignore the elephant in the room which is the yearly Indonesian fires which are estimated to be producing more daily emissions than the entire US economy.

But VW is in Europe - east to get at, fine, bankrupt.

What a joke.

[BKKdreaming]

We have been doing the same thing in California for years ,

Tuning your car so that it will pass the emissions test , passing the test , then adjusting it back so that it is driveable ,

We would have a special carb and distributor that we only used for test day ,

These limits were made by Government workers not engineers , then they are supposed to be enforced ,

some of the rules just sound good, even when not practical ,

In California there is supposed to be a certain percentage of zero emissions cars , but somehow they forget that an electric power plant puts out emissions too !

VW just got caught , I am waiting to see what other "tricks" were done by the other car companies ,

Since none of these tests are "real world" but done on a dyno inside a building the numbers will never be the same as driving down the highway

[NeverSure]

^^^ Perhaps you don't recall how smoggy the LA basin used to be. It's not just cars but industry that's cleaned up. In the process fuel economy has increased greatly from efficiency, and they've figured out how to get the power back after producing dogs in the 1970's.

My Ford F150 supercrew with the largest V8 will get 19 mpg running empty on the freeway. Loaded or pulling it drops to about 15. I remember the day when the average sedan got about 15 mpg and a pickup maybe 12 running empty. Things have actually improved. Chevy and Ford can now build their hot rods (the new Mustangs, Corvettes and Camaros) with big V8's and gobs of power and burn clean. That's progress.

I'm pissed at VW, the liars. The engines run dirty. What will happen to power and fuel efficiency if they do enough to the engine to make it actually burn cleanly? Diesel is inherently dirty being not as refined as gasoline.

I want to see what happens when they change them to meet emissions requirements and then see how happy people are. VW couldn't make the both clean and powerful before, so they lied about it. Now let's just see...

If it was me, I'd ban VW sales in the US for 5 years as part of the punishment, even though they have a big manufacturing plant in Chattanooga, Tennessee.

Cheers.

[Andaman Al]

^^^ Perhaps you don't recall how smoggy the LA basin used to be. It's not just cars but industry that's cleaned up. In the process fuel economy has increased greatly from efficiency, and they've figured out how to get the power back after producing dogs in the 1970's.

My Ford F150 supercrew with the largest V8 will get 19 mpg running empty on the freeway. Loaded or pulling it drops to about 15. I remember the day when the average sedan got about 15 mpg and a pickup maybe 12 running empty. Things have actually improved. Chevy and Ford can now build their hot rods (the new Mustangs, Corvettes and Camaros) with big V8's and gobs of power and burn clean. That's progress.

I'm pissed at VW, the liars. The engines run dirty. What will happen to power and fuel efficiency if they do enough to the engine to make it actually burn cleanly? Diesel is inherently dirty being not as refined as gasoline.

I want to see what happens when they change them to meet emissions requirements and then see how happy people are. VW couldn't make the both clean and powerful before, so they lied about it. Now let's just see...

If it was me, I'd ban VW sales in the US for 5 years as part of the punishment, even though they have a big manufacturing plant in Chattanooga, Tennessee.

Cheers.

Not sure when you drive the "largest V8' you have much credibility commenting on a thread concerning emissions, carbon foot prints, fossil fuel conservation etc etc etc

To be honest I am unsure why anyone wants to relocate to the US and do business there when it is such a litigious society. If you want to ban VW for 5 years as well as whatever other punishments you think they deserve, that's cool, VW should pull out and stay out along with every other multi-national and leave the USA to it's own devices.

These things often come as a great distraction to the American people who can merrily slag off BP, VW etc etc yet they ignore the fact that some of the dirtiest tricks in the world have been played by the large US conglomerates with such giants as Exxon and Chevron having laid waste to tens of thousands of acres of the Amazon and Africa including their entire eco cultures. It seems its the NIMBY mentality. Go and lay waste to whatever you like in the world if you are a US company and it's ok, but Not In My Back Yard.

[NeverSure]

^^^ Perhaps you don't recall how smoggy the LA basin used to be. It's not just cars but industry that's cleaned up. In the process fuel economy has increased greatly from efficiency, and they've figured out how to get the power back after producing dogs in the 1970's.

My Ford F150 supercrew with the largest V8 will get 19 mpg running empty on the freeway. Loaded or pulling it drops to about 15. I remember the day when the average sedan got about 15 mpg and a pickup maybe 12 running empty. Things have actually improved. Chevy and Ford can now build their hot rods (the new Mustangs, Corvettes and Camaros) with big V8's and gobs of power and burn clean. That's progress.

I'm pissed at VW, the liars. The engines run dirty. What will happen to power and fuel efficiency if they do enough to the engine to make it actually burn cleanly? Diesel is inherently dirty being not as refined as gasoline.

I want to see what happens when they change them to meet emissions requirements and then see how happy people are. VW couldn't make the both clean and powerful before, so they lied about it. Now let's just see...

If it was me, I'd ban VW sales in the US for 5 years as part of the punishment, even though they have a big manufacturing plant in Chattanooga, Tennessee.

Cheers.

Not sure when you drive the "largest V8' you have much credibility commenting on a thread concerning emissions, carbon foot prints, fossil fuel conservation etc etc etc

To be honest I am unsure why anyone wants to relocate to the US and do business there when it is such a litigious society. If you want to ban VW for 5 years as well as whatever other punishments you think they deserve, that's cool, VW should pull out and stay out along with every other multi-national and leave the USA to it's own devices.

These things often come as a great distraction to the American people who can merrily slag off BP, VW etc etc yet they ignore the fact that some of the dirtiest tricks in the world have been played by the large US conglomerates with such giants as Exxon and Chevron having laid waste to tens of thousands of acres of the Amazon and Africa including their entire eco cultures. It seems its the NIMBY mentality. Go and lay waste to whatever you like in the world if you are a US company and it's ok, but Not In My Back Yard.

"...that's cool, VW should pull out and stay out along with every other multi-national and leave the USA to it's own devices."

They can't. The US is the largest auto market in the world. It's so large that 17 companies manufacture cars in the US including VW, BMW and Mercedes. Toyota, which also manufactures in the US just passed VW as the world's largest seller of autos and I believe it's due to this scandal.

Outright liars and cheaters should be banned from the country.

Your lame attempt at changing the topic won't absolve the Germans from what they've done world wide and they should be punished. Fixing the cars (if they can) isn't nearly enough. Someone needs to make an example of them.

Today you couldn't run fast enough to give a VW away for free in the US.

Cheers.

[Naam]

"...that's cool, VW should pull out and stay out along with every other multi-national and leave the USA to it's own devices."

...and investors should leave the USA to its own bankruptcies such as General Motors

[JetsetBkk]

<snip>

Today you couldn't run fast enough to give a VW away for free in the US.

<snip>

I'll take 5. Thanks.

[NeverSure]

"...that's cool, VW should pull out and stay out along with every other multi-national and leave the USA to it's own devices."

...and investors should leave the USA to its own bankruptcies such as General Motors

No, and Germany will have to bail out VW if it comes to that. A country can't take that kind of a hit to its economy.

The US was smart about it. It didn't give GM money. It bought newly issued stock which became 60% of GM stock for $50 billion. Over the next five years as the recession left, sales increased and GM returned to profits, the US government sold that stock for $40 billion for a net cost of just $10 billion to get GM healthy again.

Remember TARP - the Troubled Asset Relief Program that was used similarly in other industries including financial institutions? The US put $433 billion into that and has received a return of $443 billion selling out of it for a net wash overall. It didn't cost the taxpayers anything for the bailouts. New York Times