Salient to Investors:

Tim Rokossa at Deutsche Bank said the consequences of Volkswagen’s intentional cheating could be far larger than in previous auto manufacturer cases, and makes its US turnaround significantly harder: though companies who fully cooperated with regulatory agencies received lower fines.

Harald Hendrikse at Morgan Stanley said Volkswagen faces penalties, significant costs to bring the cars involved into compliance, and a tarnished brand image, and while the company has plenty of net cash, its operating performance will suffer for some time.

Stephen Reitman of Societe Generale said a bigger concern for Volkswagen than the potential fine is the risk of criminal charges and the damage to its reputation because it used its clean diesel claims to differentiate itself.

Douglas Karson at Bank of America said the reported $37,500 fine per vehicle is very high considering the recall and penalties surrounding Navistar, GM and Toyota.

Alexander Haissl of Credit Suisse said Volkswagen’s €6.5 billion provision to cover legal costs is unlikely to be the final cost given regulatory penalties, civil litigation and market share losses, and will pressure its balance sheet and dividend payments.

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