“By skipping a contentious trial, VW has actually restricted damage to its brand image and is even more able to quantify the general costs,” Mr Hull said. “We believe the complete €16.2bn dieselgate provision assumes US Department of Justice and Ecological Protection Agency fines. To some extent the higher the compensation and fixes, the reduced the fines.
“While we can not guideline out further strands to the emissions scandal, we believe the most recent VW discuss rate factors in an overly bad scenario,” he added.
“Numerous investors have actually checked out VW shares as as well volatile along with as well Numerous unknowns. However, we are gradually getting a lot higher clarity concerning the feasible one-off costs.”
The dieselgate affair has actually likewise steered VW to rate up job about electric vehicles – a place it possessed neglected as a result of a concentrate on diesel – and this will certainly likewise drive the discuss rate higher, according to Berenberg.
“VW shares might still be volatile for possibly 6 months. However, we believe that investors and – later – consumers will certainly be much less afflicted by news concerning the diesel crisis,” said Mr Hull, including that the company’s shares could possibly hit €250 in 2 to 3 years.