Tuesday, September 3, 2024

Six Questions

 1.  How much money does VW need to 'save' itself....based on the chatter of the past 24 hours?

Well....the rumor talk is 5-billion Euro to dig VW out of the pit.  But with this.....since the board is mostly resigned, you'd have to draft some new people, rig up a union deal that isn't very pleasant, and start to think about the gas/diesel car business in a different way.

2.  Does the SPD-coalition have 5-billion Euro to 'give' VW?

HA....that's a BS question.  Lindner, the Finance Minister, will tell you hell-no.  However, if you said this is the collapse of VW in slow motion....that you have to do something....they will invent 2 or 3 billion Euro for 2025/2026 and arrange a loan for the rest.  

3.  Does the VW collapse lead to serious mess across all of Germany?

It's a trigger....meaning there are dozens of medium-sized companies in serious jeopardy at present, and banks getting tight with money....would harm them as well.

4.  Does the state need to dump ownership of 20-percent of VW's shares?

Well....just about everyone will say yes.  Who would buy the shares?  No one can show that kind of interest.  Even  China doesn't have the money to buy into this (four years ago...yes, they would obviously make a deal).

5.  Doesn't a lot of this spiral lead back to Merkel's 'end' to gas/diesel cars?

Yeah, with China making the quality E-cars for 30-percent less than VW can.  If you dumped the ban on gas/diesel?  Well....that would reset the stage, but who is willing to dump the ban?

6.  Could Germany survive without VW?  

It's an unanswerable problem.  The question really ought to be.....where can you find 5-billion Euro?

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