The American depositary receipts (ADRs) of German automotive giant Volkswagen AG (ADR) (OTC: VLKAY) are down more than 3 percent at this writing Friday and have touched a new 52-week low.
Volkswagen ADRs have plunged 36.5 percent over the past month following an emissions scandal and reports of fraudulent software in a sizable percentage of Volkswagen models on the road in the United States.
As reported earlier this week, Teo Lasarte, Bank of America Merrill Lynch analyst, “sees four potential risks to the company as the Volkswagen emissions scandal continues to play out.”
The report continued, “Risks include regulatory fines, lawsuits, recall costs and a potential capital increase to the company’s financial segment. At this time, developments are too early-stage for Bank of America to attempt to quantify these risks accurately, but Lasarte estimated that the company could face €26.5 billion in liabilities.”
Lasarte is just one analyst. Others have heaped bearish calls on Volkswagen as well, and with the risks outlined by Lasarte nowhere close to being ...
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