This story continues to boggle the mind:
A scandal that has battered Volkswagen’s image in the United States spread to the automaker’s core market in Europe on Tuesday, when the company said that 11 million of its diesel cars were equipped with software that could be used to cheat on emissions tests. That was more than 20 times the number of cars previously disclosed.
The company also said it would set aside 6.5 billion euros, or about $7.3 billion — the equivalent of half a year’s profits — to cover the cost of making the cars comply with pollution standards. ...
Volkswagen said on Tuesday that the scandal would cut deeply into this year’s profit. And the company’s shares plunged again, ending the day 35 percent below the closing price on Friday, before news of the diesel deception broke. As a result, the company’s stock market value has declined about €25 billion in two days of trading.
via www.nytimes.com
Do the finance folks still do event studies? If so, here is a dissertation chapter!
Footnote that may only interest me: why the unequal treatment of the euro?
- 6.5 billion euros
- €25 billion
