Carmakers bruise EU shares on fears of another emission scandal
On Friday, EU shares edged down, being driven by tumbles in car stocks amid investor concerns that the emissions scandal could affect more carmakers.
The Stoxx Europe 600 fell 0.2%, trading at 332.71, while the automaker sub index dropped 2.9%.
Stocks in Daimler AG dipped more than 5%, when the German automaker told it’s going to review its current American emissions certification process, obeying the recent verdict of the US Justice Department.
It provoked a massive sell-off in the wider EU car niche, with Peugeot SA -3.4%, Fiat Chrysler Automobiles NV -2.9%.
The vast majority of carmakers of the European Union don’t have an opportunity to hide. Meanwhile, it feels like the emissions scandal has been specially set up to claim as more scalps as possible.
Daimler will most likely become the next victim of the scandal, because this particular automaker starts an investigation following the DOJ’s request. Today’s drop in its stock price clearly reflects investors’ worries about the problem.