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VW shares sink after Deutsche See sues

Monday, February 06, 2017 - 01:34

Volkswagen is the biggest loser in early trading on Germany's DAX share index after the carmaker is sued by its first big German customer over its diesel-test cheating. Laura Frykberg reports.

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It may have fallen hook, line and sinker... But now Deutsche See wants Volkswagen to pay the price. The fish distributor is suing the German carmaker - for leasing vehicles it said were environmentally friendly. The first corporate case for the company in Germany since dieselgate broke in 2015. Shares in VW fell 1.6 percent on the news. That and mudslinging by former management - has left some in the market unimpressed. (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It does not help when the former chairman of the board and the former chairman of the company wage war against each other. There is a saying at the stock exchange - the more you stir the filth, the more it smells, we don't need bad smelling shares, we need clarity, sweet-smelling clarity." Deutsche See - which won the sustainability prize in 2010 - says it was maliciously deceived by VW. And reportedly wants 12.8 million dollars in damages. Some say it's just a small bump in the road though - to what appears to be a recovery. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER, CCLA INVESTMENT MANAGEMENT, JAMES BEVAN, SAYING: "The underlying business picture for VW may have indeed turned a corner. And one can join the dots on what's going on in terms of sports utilities, in terms of trucks sales, and construct a relatively optimistic perspective for VW shares for the next twelve months." But there are still dozens of other claims to settle in that time. The outcome of which is uncertain - something markets are never fond of.

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VW shares sink after Deutsche See sues

Monday, February 06, 2017 - 01:34