VW is forecasting Q1 operating profit to be down some 1.6 B Euros vs last year. Flox of “write downs”.
I have trouble decoding the “JC speak” on this one:
In addition, Volkswagen said it felt a 300 million euro impact from adjustments in “provisions for the diesel issue” and a write down in the cost of “vehicles in transit in connection with the import duties introduced in the United States at the beginning of April”.
The diesel scandal was something like 9 years ago, so how much of that writeoff is the diesel thing, and how much is the tariff impact?
And, what do they mean by “write down in the cost of vehicle in transit”? Are they writing down the cost, to try and cheat on import tariffs? Are they intending to eat the tariffs, in spite of their earlier threat to put the tariff charge on the window sticker as a separate line item? Are they writing down the value of the cars, on the chance they will not be saleable in the US and will need to be shipped to Canada/Mexico, or back to the EU?
Steve…after all these years, still flummoxed by “JC” doubletalk