BWM: Emission Scandal Likely To Cut Price Into Half

Short

BAY.MOTOREN WERKE AG ST (XETR:BMW)

Updated

XETR:BMW BAY.MOTOREN WERKE AG ST

Trend Analysis Beyond Technical Analysis

Story behind this trade is quite simple:

Until today BWM denies to be involved in the collusion scandal about Germany's car makers. According to latest news this is not true.

Short term BMW is facing massive problems with regulators and customers class action. Same time BMW is part of every investment strategy of large investors to cover Europe and/or Germany. This funds owned stocks are likely to be sold now.

Same time Germany's car makers facing huge problems about missing electric powered cars - in large investors view. 2018 will tell the opposite story. BMW might become the first carmaker able to produce and to sell 1 Million battery powered cars in 2020. This might turn arround stockmarket price by 2018 and could push all German Auto makers and the DAX to unseen new highs by 2020. Same time Investors should focus next 12 month more on TSLA - even as M&A target.

Comment:

FUNDAMENTAL VIEW: BEYOND DIESEL EMISSION SCANDAL

QUOTE: "Audi targets 10 billion euros in cost cuts to fund electric-car push: sources"
SOURCE:

Comment:

FUNDAMENTAL VIEW:

1.CUSTOMERS MIGHT RETURN THEIRE DIESEL CARS.
2. AT LEAST U.S. INVESTORS WILL START CLASS ACTIONS BASED ON FRAUD IF STOCKMARKET PRICES GOING DOWN ON THIS ISSUE:

This is going to cost billions for all 5 carmakers in Germany:

Source available in German Language only. Follow up in english as soon as available.

Comment:

Similar story in English Language:

German carmakers face political reckoning over diesel

Comment:

FUNDAMENTAL VIEW: MAJOR RISK FOR GERMANY'S CARMAKERS

.
ENGLISH TRANSLATION as soon as available.

Comment:

FUNDAMENTAL VIEW: DIESEL EMISSION SCANDAL
Emissions scandal is a risk to German economy: ministry

Comment:

Audi chief knew about diesel manipulation up to 9 years before scandal broke
Revelations would confirm that decision to use software to manipulate diesel emission filters went right to the top

Comment:

Serious:

Diesel-Fahrverbote «nahezu unausweichlich

(Update in english language as soon as available)

Comment:

Developing important story, available in German Language only. Follow up in english as soon as available. Please use translator to get the meaning in the meantime.

Verkehrsministerium plant Hardware-Umrüstung von Diesel-Pkw

Comment:

Umweltbundesamt zweifelt am Nutzen von Hardware-Nachrüstung

Die Autoindustrie soll per Software-Update für bessere Luftwerte sorgen. Umweltministerin Hendricks geht das nicht weit genug: Sie fordert eine technische Nachrüstung. Aber selbst da sieht eine neue Studie kaum Wirkung.

Comment:

Remark: update in english language as sonn as available.

Today's facts

Regulators saying:

- Software updates not working like necessary
- Hardware updates unlikely to solve out this issue

Germany's carmakers likely forced to buy back all Diesel engine powered cars they sold in Germany in the past 6 years.

Comment:

Merkel Opens Door to Diesel Lawsuits as Election Rival Attacks

Comment:

China looks at ending sales of gasoline cars

China's industry ministry is developing a timetable to end production and sale of traditional fuel cars, state media on Sunday cited a Cabinet official as saying.
The reports gave no possible target date, but Beijing is stepping up pressure on automakers to accelerate development of electrics.

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