Volkswagen sells its brand

In September 2015, Volkswagen was cheated by the exposure of diesel vehicles, and received a high-price ticket, which resulted in huge financial pressure. It has recently proposed a plan to reduce expenditures. Overseas media and research institutions have even given the public a trick or speculated about possible decompression measures. Including selling their brands and delaying the increase in the shareholding in FAW-Volkswagen.

Or will lose more than 70 billion US dollars!

The EPA of the US Environmental Protection Agency announced that there were frauds in the local 486,000 diesel-powered vehicles of Volkswagen. The company used defective software to conceal the amount of toxic pollutants in cars, and thus passed the pollutant emission test. Actually, the public vehicles exceeded the standard by nearly 40 times. As much. Subsequently, Volkswagen confirmed that there were 11 million vehicles worldwide involved in this incident. Afterwards, various countries have successively announced that they are paying close attention to the general public's tail gas emissions fraud. Many countries have even begun investigations.

The exhaust valve has brought huge economic losses to the public. First, the U.S. Environmental Protection Agency stated that it would probably give the general public a fine of US$37,500 per vehicle, totaling about US$18 billion. Immediately after the public stock price plummeted, the market value shrank by nearly 30 billion euros. Volkswagen said it will prepare 6.5 billion euros for aftercare funds for the exhaust valve. However, according to analysts, whether it is 6.5 billion euros or 18 billion US dollars, it is not enough to become the ultimate upper limit of the public's loss.

In addition to the US$18 billion large U.S. government fines, the recall and rectification of 11 million vehicles worldwide, and the claims that consumers and investors may demand, will also be costly.

According to relevant reports, VW-related losses may be between 30 billion euros and 65 billion euros, and according to the cap of 65 billion euros (about 73 billion U.S. dollars), it is exactly 10 times that of its aftermath. And Shengbo company even predicts that only the public will lose US$74 billion in the United States. At present, Volkswagen’s Equity Capital has a total value of 96 billion euros. Although it can cope with the expenses, it is also obvious that the pressure on Shanda is big.

For this reason, Volkswagen has once again proposed a plan to cut costs, and the scope has caused many speculations.

Recalling reductions

Matthias Mueller, the new CEO of Volkswagen Group, recently announced again that it will speed up the reduction plan. On October 13, 2015, the Volkswagen Passenger Vehicle brand issued an official statement stating that the brand will reduce its investment by 1 billion euros (about US$1.1 billion) per year on the basis of the original reduction project, but this statement did not Point out the number of years of reduction.

This was the first brand that the group had proposed to reduce expenses since the scandal broke out. In fact, the reduction plan of the Volkswagen Group has already been implemented. However, the current situation has forced the group to accelerate the pace of investment reduction.