The VW scandal is creating a big risk for Germany.
Germany is a country based on export and on the reknown quality of their products.
The issue is that what happened to VW is deliberate cheating and Germany, during the various European crisis, has created a lot of enemies as it wanted to impose the German perfection on everyone.
Now the scandal from the US is spreading everywhere. There are “please explain” questions from Australia, China, South Korea, Italy, France etc.
Moreover one of the major newspaper “Die Welt” just published that the German Government knew about the device and the device is not just used for 4 cylinder turbo diesel engines. Now there are several inquires into it.
And the VW group is massive (VW, Audi, Skoda, Lamborghini, Seat, etc).
Still VW will survive (well it survived being one of Hitler’s pet project…) and, when all is finished, it will be priced perfectly for the share market.
The big hit for VW (and why they did it) is that the US is going to impose a law of fuel consumption of 54.5 miles per gallon by 2025….and Germany wanted to win that race at all cost.
investorpolitico 