Volkswagen shares tumble as GM shares plunge
Volkswagen shares fell as much as 7.3 per cent on Wednesday, hitting their lowest level since December 2015.
The German automaker shares tumbled more than 30 per cent as investors scrambled to sell their holdings amid worries about its prospects for new vehicles and the company’s restructuring plans.
The drop was partly due to concerns about the potential for a restructuring plan that could force VW to sell some of its most expensive vehicles in the US and Europe, while also threatening to weaken its sales and profit margins in Asia.”VW is in a bad position,” said Paul Smith, an analyst at Sanford C. Bernstein & Co. “The restructuring is very difficult, and it may have the opposite effect of what was hoped for.”
Volkswagen shares closed down 0.4 per cent at $35.82 in New York.GM shares were up 2.1 per cent, while Ford fell 0.9 per cent and General Motors fell 0,1 per in Frankfurt.
The S&P 500 index, which measures the broadest index of stocks and bonds listed on the New York Stock Exchange, was little changed at 1,967.05.
The FTSE 100 index of companies fell 0 .7 per cent.