Dieselgate Be Damned: Volkswagen Stocks Surge After Cost Cutting Bolsters Profits

Volkswagen AG's rebound from the diesel emissions scandal and an upgraded earnings forecast has helped the stock to surge ahead of its German peers.

VW's preference shares returned 23 percent this quarter through Friday, best among European auto stocks, while Daimler has gained 5.3 percent and BMW is little changed. Porsche Automobil Holding, which owns a majority of VW common shares, has done even better -- advancing 31 percent.

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TheSteve - 12/19/2017 1:25:06 PM

+3 Boost

Some Perspective: We must remember that VW stock took a massive hit in 2015 due to Dieselgate, which caused it to drop from its all-time high. The (approximately) 60% stock value drop over a period of about half a year, due entirely to Dieselgate and related scandals, is not trivial! VW stock has clawed back some of those losses, but so far, as only regained about half of that loss in the past two years.

While some folks might spin this as VW making noteworthy stock value gains this year, in reality, they've just been digging themselves out of the hole they created in 2015, and they're only half-way out so far.