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More road blocks for VW

Wednesday, December 16, 2015 - 01:39

European sales take another knock, jobs are cut in Zwickau and part of its funding for a new factory in Poland is, reportedly, frozen: VW counts the ongoing costs of its emissions scandal. Hayley Platt reports.

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Just when you thought it couldn't get worse for VW - it has. 250 million euros of funding for a new factory in Poland has, it's reported, been frozen. The European Bank for Reconstruction and Development said to be concerned over VW's plans to cut costs. And the rise in its borrowing costs. European car sales data shows VW's market share of it core brand tumbled by just over a percent to 12.2 percent in November. Sales edged up just 3.1 percent on the year - compared to a near 14 per cent rise for the sector as a whole. Mint Partners, Bill Blain. (SOUNDBITE) (English) BILL BLAIN, CAPITAL MARKETS STRATEGIST, MINT PARTNERS, SAYING: "Their goods are supposed to be the best that the engineering background can produce, so other countries with similar backgrounds, particularly Japan are poised to step in to that state. There has been a knock-on effect from Volkswagen where we've heard of investors selling other German hi-tech assets and moving in to other parts of the market." That's not all. From next year six hundred temporary jobs will be axed from a German plant that makes some Golf and Passat models. And Stuttgart prosecutors say they're investigating Bosch - makers of auto parts for VW - to see if staff were involved in emissions rigging. But they're not the only ones in the firing line. Tests on one of Mercedes diesel models are said to show nitrogen oxide emissions far exceeding legal limits, according to environmental lobby group DUH. Daimler described the results as "questionable", and says legal action could be taken.

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More road blocks for VW

Wednesday, December 16, 2015 - 01:39