Volkswagen maintains it still enjoys a healthy relationship with capital markets, even securing new credit lines, despite the obvious fallout from its emissions scandal continuing to wreak havoc with its once carefully-nurtured reputation.
The ongoing crisis has rocked the normally staid headquarters of Wolfsburg to its foundations, but it appears although Volkswagen has undoubtedly endured seemingly endless negative publicity, any downturn and subsequent loss of faith from financial markets, will be relatively short-lived.
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“The massive slump some feared has not occurred,” said new VW CEO, Matthias Müller in Wolfsburg. “Two-and-a-half months after the crisis broke, we do not see any reason to change the adjusted annual forecast.
“Where does Volkswagen stand economically? We are watching that very closely. A scandal of this scale is bound to have repercussions. Deliveries following a crisis recover relatively quickly.
“We are working very hard on day-to-day operations – that is a particularly challenging task. To put it plainly, we are fighting for every customer and every car. Anything not absolutely necessary will be cancelled or postponed.
“We have concluded additional credit lines. Volkswagen’s good reputation on the capital markets is still intact. Shares have recovered by around 40% from the low of the crisis. Even though the current situation is serious, the company will not go to pieces.”
Müller declined to be drawn on any impact on staffing except to note: “Stable jobs are key,” but the automaker will be bracing itself for a potential raft of litigation starting in the US and possibly sweeping rapidly across the North Atlantic.
The CEO’s chairman, Hans Dieter Pötsch, also struck a serious tone, noting VW had “lost the trust” of its customers, employees, politicians and the public.
“In a nutshell, we are in the midst of one of the greatest tests of the Group,” said Pötsch. “Nothing will be swept under the carpet – it is essential these investigations are absolutely independent.”
