Volkswagen AG (ADR) (OTCMKTS:VLKAY) continued trading in the same narrow range of the previous 4 session as it closed at the end of the day with a minor gain of 1.15%. The volume of the day at 403,000 was much lower than the daily average of 1.1 million and reflected the true state of the structure at the current moment. The stock has been in a process of base building which is most probably taking the form of a sideways rectangle. In that case, the volume may remain thin for a long time and the investors may remain indifferent.
Volkswagen AG (ADR)(OTCMKTS:VLKAY) CEO Mr. Herbert Diess expressed that he does not believe that vehicles demand had peaked in China market, as concerns increase over the impact on worldwide automakers from the growing weakness in the Chinese automobile market. The biggest automobile industry has been witnessing a changing trend where demand for mobility and automobiles is shifting to smaller places from the big cities.
Volkswagen CEO Diess expressed that the growth rate of automobile market in China is declining. Chinese automobile sales increased for the first time in last two quarter in September month, bringing year-to-date growth figure at 0.3%. Volkswagen comes in the list of top automobile firms in China, and has contributed for over 50% of its earnings in last some years.
Volkswagen’s new CEO apologized at the recently held Tokyo auto expo for the emissions scandal, stating to win customer trust soon. He also confirmed that they have delayed the launch of a diesel automobile in Japan. Sven Stein who heads Volkswagen Japan attended the expo participants at the booth and later he was joined by the company’s CEO. Stein bowed in Japanese style seeking the apology for emissions scandal.
Diess expressed that on behalf of management and Volkswagen, he apologizes for the disturbing emissions scandal. He stated that as of now the main priority for them is to rectify the problem in the involved cars, find out the facts and ensure this is never repeated again.
Volkswagen is grabbling with a crisis after regulators noticed its diesel cars having special software to cheat on emissions tests. In fact, these cars were releasing pollutants beyond impermissible limit. Following the emissions scandal, Volkswagen had no choice but to recall the faulty cars and bear the additional expenses. The CEO said that they are taking all necessary measures to rectify the problems.