Volkswagen AG (ADR) (OTCMKTS:VLKAY) lost some of the gains made in the previous day as it finished the last trading session with a loss of 2.60%. The volume of the day at 601,000 was almost half the daily average of 1.2 million, indicating the absolute indifference of the investors at this point of time. The stock created a huge Saucer Top, a pattern similar to gradual death and one of the most bearish patterns. After the breakdown, the stock is in the process of making a base at the lower levels and this process can take the form of rectangle from the intermediate perspective.
Volkswagen AG (ADR)(OTCMKTS:VLKAY) CEO Herbert Diess said that he doest not think that demand for vehicles had peaked in China, as concerns aggravate over the impact on international automakers from the prevailing weakness in the biggest automobile market. The Chinese automobile market has likely shifted from the big cities to smaller places where there is increased demand for cars and mobility.
Volkswagen CEO stated that the growth rate in China is slowing. Chinese auto sales surged for the first time in last six months in month of September, bringing year-to-date growth at 0.3%. The company is the top automobile company in China, which has contributed for more than half of its earnings in recent years.
Volkswagen’s new CEO Diess apologized at the Tokyo auto expo for the company’s emissions scandal, promising to get back customer trust, and confirmed company will postpone the launch of a diesel car in Japan. Sven Stein, the head of Volkswagen’s Japan segment, who appeared at the company’s booth before CEO, bowed for some seconds in a Japanese style asking apology.
Diess stated that on behalf of the entire company, he would like to apologize, stressing that their priority is to fix the identified problem in the cars, uncover what happened and ensure such kind of problem never happens again.
Volkswagen is caught in a crisis after U.S. authorities noticed its diesel cars had software installed that enabled the vehicles to cheat emissions tests. The vehicles were releasing pollutants at much higher levels on the road. Following the scandal, the company faces recalls vehicles and punishing fines. Diess stated that they are doing everything they can to reestablish trust in Volkswagen brand. He promised to establish a new and better entity, rallying behind the concepts of responsibility, innovation and lasting value.