VW shares sink again as scandal takes on new dimension

Investors wiped another 3 billion euros off Volkswagenand’s market value on Wednesday after it said it had understated the fuel consumption of some cars, opening a new front in a scandal that initially centred on rigging emissions tests.
The carmaker said late on Tuesday it had understated the fuel usage of up to 800,000 cars in Europe, meaning those vehicles affected are more costly to drive than their buyers had been led to believe. The revelations — which added a new dimension to a crisis that had previously focused on environmental damage — are the first to threaten to make a serious dent in VWand’s car sales since the scandal erupted, analysts said. They could potentially deter cost-conscious consumers who have so far taken VWand’s manipulation of smog-causing emission tests in their stride. The effects of the scandal have so far been barely reflected in VW sales figures — although it was the only German carmaker to report a decline in car registrations in Germany in October. Shares in Europeand’s biggest carmaker were down 8.6 percent at 101.45 euros by 1003 GMT. andquotAnother week, another shock in the VW story,andquot Exane BNP Paribas analyst Stuart Pearson wrote in a note. andquotWe add anot01
SOURCE: TODAY’S ZAMAN

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