A day after Volkswagen’s dieselgate scandal (U.S. edition) hit, my former charges at Thetruthaboutcars started to add-up the possible cost of bringing an affected VW in compliance – a frivolous undertaking, given the fact that back on September 22, nobody except a couple of rogue coders had heard of a defeat device, not to mention the fact that the BOM list and number of work-hours remain a mystery to this day. Then, TTAC wrote that “any sort of recall repair work would need to be weighed against the cost for VW to buy back its own cars.” With that, they hit pay-dirt. Buy back is what Volkswagen is going to do. [Continue Reading]
October 25, 2015 By
February 13, 2015 By
This week’s news that activist investors are seeking $8 billion in stock buybacks from General Motors has reignited a nearly half century of concerns that the once-dominant automaker continues to prioritize short-term results over long-term strategy. Already behind the competition on global platform rationalization, fuel efficiency, pricing power and luxury-brand margins, GM clearly has better things to do with its cash than give it away to investors. But while analysts and investors wrestle with these issues, taxpayers face an even more troubling question: how is it possible that they lost over $10 billion on GM’s equity only to have Wall Street strip $8 billion in cash from the company with the help of a member of the president’s auto task force?