Volkswagen Stock Plunges after Emissions Probe

Volkswagen Stock Plunges after Emissions Probe

In this Thursday, July 2, 2015, photo, customer Armando Barillas checks the interior of a vehicle for sale at the New Century Volkswagen dealership in Glendale, Calif. Volkswagen overtook Toyota in global vehicle sales for January-June, the first time the German automaker has come out top in the intensely competitive tallies. (AP Photo/Damian Dovarganes)
(AP Photo/Damian Dovarganes)

Nathan Bomey, USA TODAY

 
(USA Today) – Volkswagen’s stock plunged 20% on Monday morning as investors grappled with the automaker’s apology for cheating on emissions tests and a corresponding halt in diesel sales.

Shares of the German automaker — the world’s largest vehicle manufacturer through the first six months of 2015 — had fallen to $129.50 as of 7:45 a.m. ET. The stock is listed in Europe.

Investors are absorbing the blow of the automaker’s decision to halt sales of new and used 4-cylinder diesel cars in the U.S. until it can remove software that fooled regulators into believing that 482,000 vehicles were compliant with emissions standards.

Fitch Ratings said Monday that the scandal could put pressure on the automaker’s credit rating, but it noted that Volkswagen’s financial performance remains “extremely robust” globally.

 

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