Deep discharge public scandal first quarterly loss in 15 years

Posted on 10/30/2015 10:06:38 AM

Emissions fraud case, so that once world famous volkswagen flagship not only eclipsed, there is a defect - the cost of a lie is that the Volkswagen Group to this end appeared first quarterly loss in 15 years.
According to the public recently released three quarterly in 2015, due in September out of the 6.7 billion euros to deal with "false door", resulting in a loss of 3.48 billion euros. At the same time, influenced by "false door" event, Volkswagen sales in September fell 1.5%, resulting in mass in global sales after winning the championship three months, returned to the throne in turn rival Toyota.
Volkswagen's new CEO Muller said in a statement, "false door" to bring the public's increasingly clear impact. Some analysts predict that in response to public funds spent emissions fraud case may be between 200 billion to 78 billion euros. This, not the lies the ultimate price.
Diesel emissions fraud case, let Volkswagen 6.685 billion euros in additional spending in September, and caused its first-quarter loss of nearly 15-year history.
Local time on October 28, the Volkswagen Group released the financial statements for the third quarter of 2015, due to the deduction of the "special projects" spending 6.685 billion euros, the Volkswagen huge losses in the third quarter, amounting to 3.479 billion euros, operating loss rate 6.8% over the same period last year, operating profit of 3.23 billion euros, operating profit margin of 6.6%.
Volkswagen Group noted that the above figures do not include operating profits of the joint venture into China. According to statistics, from January to September, the public will get 3.8 billion - 3.9 billion euros in net profit from its China joint venture company.
Volkswagen CFO Frank Witter (Frank Witter) said: "The Volkswagen Group has a very robust liquidity resources, which will help us to cope well with the challenges brought about by events because the diesel engine."
Astronomical expenses scandal
There is a "special project" in the Volkswagen Group's third quarter financial statements (special items) expenses, which expenses mainly refers to costs incurred subsequent impact "diesel emissions fraud" incident arising, including government fines, and the corresponding recall technical support and other costs arising.
Data show that, before deduction of "special projects" expenses, third-quarter pre-tax profit of Volkswagen of 3.206 billion euros.
The first three quarters of total pre-tax profit of 10.2 billion euros, the cumulative operating income reached 160.263 billion euros, compared with 147.718 billion euros last year, climbed 8.5 percent year on year.
Volkswagen Group the new CEO Muller Local 28 at the Volkswagen headquarters in Wolfsburg, said: "Good operating income highlights the Volkswagen Group's core strength on the other hand, the impact of the problems caused by diesel emissions are becoming clear, we will do our best to win back lost trust. "
An unnamed German car prices engine engineer told the "First Financial Daily" reporters, said Volkswagen must make a choice as soon as the balance between power and emissions, and to continue to maintain the current efficient, environmentally friendly image, it is bound to increase investment in research and regain customer recognition.
Although the outside world predict Volkswagen will this "emissions fraud" event pay a heavy price, but now could not be accounted for specific figures, despite the provision to this end in the third quarter of up to 6.685 billion euros. According to forecasts, this part of the expenditure is mainly used Volkswagen investment in technology-related emissions and the corresponding models of the recall.
In addition to the recall cost it takes to dismantle cheat software, Volkswagen also could face fines of many countries, including the United States Environmental Protection Agency to consider an unprecedented $ 18 billion out of a ticket.
September 18, the public is exposed fraud in some diesel emissions testing. TypeEA189 diesel engine equipped cars use cheat software, in outdoor non-experimental conditions, the nitrogen oxide emissions of the engine a few times more than the US standard. According to data released by Volkswagen, the whole "emission scandal" involving Volkswagen 11 million around the world.
"Whether the next quarter or annual provision for losses continued, and now can not give a specific forecast, the amount of which depends on the specific penalties for countries, particularly the US government's ultimate punishment digital." Although the above gives insiders continue to observe It answers, but "as long as the Chinese market, there are no major change in the situation, Volkswagen will continue to maintain a good digital book."
Rescue forces in China?
Although the market still faces continuing challenges, but Volkswagen is not adjusted annual sales targets. But because diesel emissions fraud and challenging economic environment in Eastern Europe and South America, Volkswagen was lowered its full-year profit target: "We expect 2015 operating profit would have fallen sharply in the annual return on sales of 5.5% to 6.5%. between. "
In the past a very long period of time, Volkswagen has been in environmental protection and efficient image in the States auto market, with emissions fraud case was made public, the public continued to improve in order to meet emissions regulations, after the removal of cheating software, we must first solve nitrogen oxides emissions from diesel engines over the issue of high pressure brought about by the operation, if no tail gas recovery as soon as possible to find out, is bound to reduce the compression ratio of the diesel generators at work, is the impact of reduced engine power, vehicle power greatly reduced.
Volkswagen Group's new CEO Muller October 6, said the public as early as January next year, the recall of vehicles' emissions "incident involved, and will be completed by the end of next year all returned for repair. But specific solutions have not yet been released.
But "as long as the Chinese market, there are no major change in the situation, even if all the losses in other markets, can make Volkswagen had a very nourishing."
As the data presented as Volkswagen, the first three quarters of the two Volkswagen joint venture in China will reach 3.8 billion - 3.9 billion euros of profits to provide, but in addition to this figure, the Chinese market but also for Volkswagen to provide more digital book outside. The insiders pointed out that these figures are below the carrying amount of statistics on the overall profit of Volkswagen, which part of the profits will not be less than immediate profits. One of the key business is sourced from key parts.

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