It’s the dirty gift that keeps on giving black soot and red ink. Porsche Automobil Holding SE (“Porsche SE”), Stuttgart, has published the following ad-hoc release:
“Volkswagen AG announced negative special items in the amount of 0.8 billion euro (that’s a staggering $0.93 billion US Dollars)on the Volkswagen group level resulting from an administrative order which was imposed to AUDI AG due to ‘deviations,’ (aka cheating or fraud) on regulatory requirements by V6/V8 diesel engines and diesel vehicles manufactured or distributed by AUDI AG.”
Earlier in 2018, Volkswagen settled a mirror image case in Braunschweig, near its Wolfsburg headquarters, for a €1 billion fine.
“Because of the participation of Porsche Automobil Holding SE, Stuttgart (“Porsche SE”), in the amount of currently 30.8% of the share capital of Volkswagen AG, the special item results in a respective negative impact on the group earnings of Porsche SE Group for the fiscal year 2018,” Porsche tersely noted.
Porsche rules out however a spin off ala Ferrari that could value and independent company at more than, oh, more than $70 billion. The remaining outstanding fraud case from the noxious diesel emissions scandal is remains ongoing in Stuttgart, where state prosecutors are investigating the role Volkswagen’s sports car brand Porsche played in the sordid diesel affair.
“In the light of this effect in combination with negative special items on the level of Volkswagen Group in connection with the Diesel Matter in the amount of 1.6 billion euro which have already been considered in the first half-year as well as emerging time lags regarding tax compensation claims in the low three digit million Euros against Volkswagen AG, the current group’s earnings after taxes guidance of Porsche SE needs to be adjusted,” the company partially admitted.
“Based on current expectations, Porsche group’s earnings after taxes guidance of Porsche SE as at 31 December 2018 will be between 2.5 billion and 3.5 billion euros. The currently communicated guidance for net liquidity as at 31 December 2018 remains unchanged and is confirmed between 0.7 billion euro and 1.2 billion euro. However, the prognosis of Porsche SE is still subject to evaluation risks.”
No kidding AutoInformed notes the unstated, but still threatening Porsche fraud investigation.
AutoInformed.com on Dieselgate
- Dieselgate Once Again – Porsche to Fix Dirty V6 Diesels
- California Gets $3M More from VW on Dieselgate
- Dieselgate: Volkswagen Cuts Deal with FTC and Plaintiffs
- Dieselgate: Bosch Plea-Bargain for Dirty Engines
- Volkswagen Pleads Guilty on Felony Charges in Dieselgate
- CARB, CDOJ Whack VW for Another $66 Million in Ongoing Dieselgate Scam
- Significant Stories, Trends of 2017. And 2018?
- Bosch Claims Diesel Record Readings of 13 mg NOx per kilometer. Too Little, Too Late to Clean Dirty Diesel Image?