Volkswagen shares drop by 5%

[NewNiceMrMe]

Amid lower that expected results announcement...

VW drops below forecast profits

[simonb]

With SK's purchasing, can't see how that would happen!!?

[RedRobin]

It sounds like VW may have to compromise their manufacturing quality to meet the Asian competition. I hope not. A lowering of standards just for the sake of something called a share price - You can tell I don't dabble in shares. IMO there's too much emphasis on share prices....It rules too many people's lives....I must admit it makes me smile whenever the markets take a hit.

[cruiser647]

Share prices do seem to rule peoples lives. Many companies work on that premise, to the detriment of the product they make.

Auto Express??? (that truthful car rag) had a few pages on the next Golf, saying about how the unit price has been slashed, as they make a loss on every Golf sold (alledgely)

(

[RedRobin]

[ QUOTE ]

Share prices do seem to rule peoples lives. Many companies work on that premise, to the detriment of the product they make.

[/ QUOTE ]

....I'm glad to see someone agrees - I fully expected to get shot down for my view on this! 'Chase the Vision and the Dollar usually follows' is the best way imo.

[cruiser647]

Aaahhhhhh, the share price has dropped! Time to cut corners and cut people and reduce stationery and re-assure the city - for a short term jump in the share price.

The company goes downhill, and the staff morale is out the door! never mind, the share price is rising!

[fjfr]

If it falls, your pension is fecked. Then you whinge

[CarMad]

[ QUOTE ]

It sounds like VW may have to compromise their manufacturing quality to meet the Asian competition. I hope not. A lowering of standards just for the sake of something called a share price - You can tell I don't dabble in shares.

[/ QUOTE ]

You see thats not quite right. The cars that VW especially are making at the moment are very complex to build. This is a bad thing for everyone not just the shareholders.

Its one of the major reasons that VW / Audi Et al have so many reliability issues is that they over complicate things that leads to far more issues post sale with warranty issues. This doesn't help them and there profits or you and your enjoyment of your car.

German car companies make cars to a cost. Tell me how much to make 1000 of these for me please and make it cheap. This often means the quality isn't the best and the failure rate can be high.

Now the Japanese companies don't do this. They say make 1000 of these for me please and I want less than a 3% failure rate how much. Oh and if more fail you pay not me. Result is higher quality components that last longer and fail less. Its part of the reason that despite the fact to some they don't have the looks or soul but come at the top of reliability surveys.

Oh and look at Toyota now. The largest car maker in the world soon coming from nothing even in the 60/70s. They could now by the entire VW group share price wise from 1 years profits alone. Despite what some people might think of the cars to me that is deeply impressive.

[RedRobin]

Good point, CarMad - I was being my usual simplistic self. I can see the benefit of shares creating more investment opportunities which in turn, when properly used, benefit us the customer. However, I just don't approve of the downside which cruiser and myself are describing.

Cheers