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  1. #1 VW, time to pick up some shares??? 
    eeeevil Sith Admin SarasotaRepub's Avatar
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    VW - VLKPY

    Its shares plunged amid widening allegations of shady activity.
    The company reportedly installed software on “clean diesel” cars designed to mislead Environmental Protection Agency.
    It allegedly led to much lower emissions readings in the lab than car owners would actually achieve on the road.

    Volkswagen just warned that 11 million cars around the world carry the questionable software.
    It’s setting aside a whopping $7.3 billion to cover potential costs to fix the problem.

    Last price $23.97 a share...
    May the FORCE be with you!
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  2. #2  
    Ancient Fire Breather Retread's Avatar
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    I don't know. Sanctions by multiple countries are still being announced. I think the bug has a way to fall yet.
    It's not how old you are, it's how you got here.
    It's been a long road and not all of it was paved.
    A man is but a product of his thoughts. What he thinks, he becomes. Gandhi
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  3. #3  
    eeeevil Sith Admin SarasotaRepub's Avatar
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    Could be, could be...
    May the FORCE be with you!
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  4. #4  
    Moderator RobJohnson's Avatar
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    I would rather invest in an American company.
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  5. #5  
    Destroyer of Worlds Apocalypse's Avatar
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    I would not invest in this company for a while. They're in serious trouble.

    First of which, the amount they set aside will not be enough.

    Just to start, this was reported yesterday regarding the fix.

    The presumed fix would come by retrofitting a Selective Catalytic Reduction (Adblue or urea) system although that wouldn’t be the only fix necessary. Researchers discovered that the Passat TDI that they tested, fitted with the SCR system, was 5 to 20 times over the NO limit — less than the 10 to 40 times by the lean NO filter cars, but still illegal.
    Just doing the catalytic will cost an estimated $688.00/car

    11,000,000 X 688 = $7,568,000,000.00

    But keep inmind, the cars will still be over the EPA requirements and thus "Still Illegal". They need additional fixes to get the cars legal.

    Our own Bozi Tatarevic provided his preliminary list of additions (retail prices) that would be needed for each car based on the systems included in the Passat TDI — which still didn’t pass:


    • Cooler ($361)
    • Aftertreatment Fuel Tank ($534)
    • Dosing Valve ($240)
    • DPFE ($105)
    • Temperature Sensor ($171)
    • EGR ($401)
    • Catalyst ($688)
    Total = $2,500
    To get the cars legal if they all require such repairs. Cost;

    11,000,000 X 2,500.00 = $27,500,000,000

    Add to that;

    The parts costs don’t take into account the hours of labor, which for a Jetta is 6-7 hours to change the diesel particulate filter alone. Such a substantial retrofit on their cars could take dozens of hours, incurring thousands in labor costs that Volkswagen would have to reimburse its dealers for. Labor rates, typically ~$100/hour, would likely be less for Volkswagen and the automaker would only reimburse dealers for the completion time detailed in the recall order.
    6 x 100 = $600.00/car
    11,000,000 x 600 = $6,600,000,000.00

    That means it could cost VW a total $43 billion in just repair cost alone.

    But also in same report.

    Any sort of recall repair work and would need to be weighed against the cost for VW to buy back its own cars, which for a 2009 Jetta TDI, starts at about $7,000
    So lets say they decide it would cost too much to repair to get legal. And offer $5,000/car in a buy back.

    11,000,000 x 5,000.00 = $55,000,000,000.00

    Lets not forget, if I just payed $30,000 for a car 2 years ago and just got told I will only get $5,000 for my car they deceived me on. I will no longer be a loyal customer. Another hit to their stocks.

    Source.
    http://www.thetruthaboutcars.com/201...st-fix-vw-car/




    Now there also is the EPA fines. Which if the EPA decides to go maximum is $37,500/car sold. Now VW is likely negotiation a settlement, to reduce this. And no car company have ever paid a max fine. But even going with GM's ignition recall, their fine was new $1 billion. But their numbers in cars affected were less. So VW could be facing a lot more in fines. And possible from more then just the US.




    Now there is also all the Class Action Lawsuit's just filed yesterday.

    Law firm Sutts, Strosberg LLP, based in Windsor, Canada, was reported in local media to have filed a class action lawsuit seeking $1 billion in damages and $100 million in punitive damages.
    CORPUS CHRISTI, Texas, Sept. 22, 2015 /PRNewswire/ -- Robert C. Hilliard, Founding Partner at Hilliard Munoz Gonzales, LLP, and lead counsel for all personal injury and death cases inside the national GM litigation, today has filed a class action lawsuit against the German automaker, Volkswagen for installing "defeat device" software in some 11 million vehicles in order to deceive consumers about the efficacy of its "clean diesel" vehicles and cheat on environmental emissions tests.
    Their likely seeking $6,000/car

    A Seattle-based law firm, Hagens Berman, filed a lawsuit seeking class-action status within hours of the Environmental Protection Agency's press conference Friday to announce its allegations of cheating on emissions tests by Volkswagen.
    Their likely seeking $7,000/car

    OAKLAND, Calif., Sep 22, 2015 (BUSINESS WIRE) -- Girard Gibbs LLP, a leading national litigation firm, announced today it has filed a class action lawsuit against Volkswagen [VOW3.DE] alleging that the automotive manufacturer intentionally installed software on diesel vehicles designed to cheat emissions tests.
    Their likely seeking $7,000/car




    Long story short, Don't buy their stock. They will be lucky to survive as a company after this. If anything, short sell their stock.
    Klaatu barada nikto
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  6. #6  
    Moderator RobJohnson's Avatar
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    Quote Originally Posted by Apocalypse View Post
    I would not invest in this company for a while. They're in serious trouble.

    First of which, the amount they set aside will not be enough.

    Just to start, this was reported yesterday regarding the fix.



    Just doing the catalytic will cost an estimated $688.00/car

    11,000,000 X 688 = $7,568,000,000.00

    But keep inmind, the cars will still be over the EPA requirements and thus "Still Illegal". They need additional fixes to get the cars legal.



    To get the cars legal if they all require such repairs. Cost;

    11,000,000 X 2,500.00 = $27,500,000,000

    Add to that;



    6 x 100 = $600.00/car
    11,000,000 x 600 = $6,600,000,000.00

    That means it could cost VW a total $43 billion in just repair cost alone.

    But also in same report.



    So lets say they decide it would cost too much to repair to get legal. And offer $5,000/car in a buy back.

    11,000,000 x 5,000.00 = $55,000,000,000.00

    Lets not forget, if I just payed $30,000 for a car 2 years ago and just got told I will only get $5,000 for my car they deceived me on. I will no longer be a loyal customer. Another hit to their stocks.

    Source.
    http://www.thetruthaboutcars.com/201...st-fix-vw-car/




    Now there also is the EPA fines. Which if the EPA decides to go maximum is $37,500/car sold. Now VW is likely negotiation a settlement, to reduce this. And no car company have ever paid a max fine. But even going with GM's ignition recall, their fine was new $1 billion. But their numbers in cars affected were less. So VW could be facing a lot more in fines. And possible from more then just the US.




    Now there is also all the Class Action Lawsuit's just filed yesterday.



    Their likely seeking $6,000/car

    Their likely seeking $7,000/car

    Their likely seeking $7,000/car




    Long story short, Don't buy their stock. They will be lucky to survive as a company after this. If anything, short sell their stock.

    Holy shit. That is some serious dough. I look for VW dealerships to start closing in the United States. Who would want one?
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  7. #7  
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    I think it's still wait and see on VW...I agree it hasn't reached any where near bottom.


    I still believe we're in for a major correction so I'm not investing for the time being. I pulled out a few years ago and sold most of my stuff, including some Apple stock that I made a killing on...and used it to do some home improvements.

    Housing market seems to be rebounding though.
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