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Auto Stocks Slide on Fears from VW Emission Scandal
Auto stocks continue to sag this week as investors fret that Volkswagen AG may not be the only carmaker guilty of cheating on emission certification tests.
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Auto stocks continue to sag this week as investors fret that Volkswagen AG may not be the only carmaker guilty of cheating on emission certification tests.
Shares in Europe fell about 15% over the past eight days since VW acknowledged it rigged 482,000 diesel cars in the U.S. to switch to dirtier operations after passing pollution tests. VW's share price fell below €100 ($112) per share on Monday, its lowest in five years.
Analysts say investors fear the VW scandal could hurt earnings for the entire industry by prompting tighter regulatory scrutiny and ultimately more costly emission control systems for cars. They also say the bad publicity about VW's manipulated engines could hurt overall demand for diesels, which account for roughly half of all passenger vehicle sales in Europe.
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