Ion-Marc Valahu is interviewed by Times of India – 24.09.2015
“They’ve kicked out the CEO. The company and its shares should be able to stabilise,” said Clairinvest fund manager Ion-Marc Valahu.
BERLIN/LONDON/MILAN: BMW said it has not manipulated emissions tests, denying a magazine report saying some of its diesel cars were found to exceed emissions standards.
“There is no difference in the treatment of exhaust emissions whether they are on (test) rollers or on the road,” the German luxury-car maker said on Thursday.
German trade magazine Auto Bild said earlier on Thursday that BMW’s X3 xDrive 20d model exceeded “Euro 6” emissions limits more than 11-fold in road tests by the International Council on Clean Transportation (ICCT).
“No specific details of the test have yet been provided and therefore we cannot explain these results,” BMW said. “We will contact the ICCT and ask for clarification of the test they carried out.”
European shares lower with emission concerns hitting BMW
European shares were lower in choppy trade on Thursday, with BMW falling to a two-year low and dragging the whole auto sector into the red amid renewed concerns over a diesel car pollution scandal.
The declines came as index futures indicated a lower open on Wall Street and followed a drop in Asia after more dour economic data in China and the United States piled pressure on equities.
The pan-European FTSEurofirst 300 index was down by 1.3 per cent by midday, while the euro zone’s blue-chip Euro STOXX 50 index fell 1.2 per cent.
“The markets have been very volatile of late, but the general trend is still down. The China slowdown is not helping,” said Berkeley Futures associate director Richard Griffiths. The Euro STOXX Auto & Parts index fell 2.8 per cent, reversing initial gains, amid talk emission problems might not be confined to Volkswagen, which has admitted to having deceived US regulators about how much its diesel cars pollute. This week the index has lost around 13 per cent, roughly 40 billion euros in market value.
Germany’s transport minister said on Thursday emissions manipulations by Volkswagen took place in Europe, not just in the United States, and that random tests would be conducted on cars made by other manufacturers.
BWM dropped 9 per cent after a report in German magazine Auto Bild said some of its diesel cars were found to exceed emissions standards. BWM said there had been no manipulation at the group and it was unaware of tests cited by Auto Bild.
“BMW’s share price reactions shows how nervous the investment community is with respect to diesel engines, compliance and future regulation,” said Arndt Ellinghorst, head of Automotive Research at Evercore ISI.
“Thank you VW,” he added.
However, Volkswagen shares — which had closed up 5.2 per cent on Wednesday — advanced 1.3 per cent as investors welcomed the resignation of CEO Martin Winterkorn as a sign the company was taking steps to tackle the problem.
“They’ve kicked out the CEO. The company and its shares should be able to stabilise,” said Clairinvest fund manager Ion-Marc Valahu. Yet the stock remained down by nearly 30 per cent since the emission scandal emerged last weekend.
The were also declines on Thursday in other sectors. The European basic resources index was down 2.8 per cent while the oil & gas index fell 1.9 per cent, reflecting concerns about economic weakness in China and elsewhere.