Porsche Automobil Holding SE, the family-controlled holding company that owns a majority stake in Germany’s Volkswagen AG, Europe’s largest automaker, has announced a reduction in its envisioned full year guidance.
Last month the German carmaker, also the second biggest in the world following Japan’s Toyota, has admitted to accusations of cheating on diesel emissions tests in the US, forcing its long time CEO out and loosing around a quarter of its market value after it also acknowledged that almost 11 million autos around the world had been fitted with the illegal software. The effects are spreading throughout the automotive industry but first impact the companies close to the group – such as Porsche SE, the holding company of the Porsche-Piech clan. The firm recently said its 2015 profit after tax could reach just 0.8 to 1.8 billion euros, being affected by the third quarter loss posted by VW AG as it battles the effects of the dieselgate crisis.
Meanwhile, in Europe – where VW AG will recall 8.5 million vehicles – the Spanish high court had initiated the proceedings against the company in light of the findings uncovered by the biggest business scandal that has engulfed the company in its 78-year history. According to a court ruling released on Wednesday, Volkswagen needs to send a representative to appear before the Spanish judge by Nov. 10, to face the accusations. The case is related to the public prosecutor’s call on the fact that Volkswagen could be accused of fraud – taking undeserved subsidies – while also committing a crime related to the environment as its cars polluted more than it was legally allowed.