Volkswagen will reportedly start naming people responsible for the manipulation of emissions tests on Friday. As Ivor Bennett reports, dealers and consumer protection bodies are also warning the auto maker must move quickly to recall and refit models to limit the long-term impact to its reputation.
It's not been pretty viewing for VW this week, but finally the market is showing something to cheer. The resignation of CEO Martin Winterkorn saw shares rebound over 5 percent, and that trend continued on Thursday. There is, though, a lot of ground to recover. Volkswagen's losses this week alone are double the total value of rival Peugeot. Capital Markets strategist Oliver Roth. (SOUNDBITE) (German) CAPITAL MARKETS STRATEGIST, OLIVER ROTH, SAYING: "I believe that the really big hysteria and panic at VW is over. Still, we will continue to hear about lawsuits over the coming days and weeks. There will be speculation about how large the fine will be and it will be large." The penalty could be as much as 18 billion dollars for manipulating diesel emissions tests in the U.S. The bigger problem though could be reputation, says Justin Urquhart Stewart from Seven Investment Management. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, SEVEN INVESTMENT MANAGEMENT LLP, JUSTIN URQUHART-STEWART, SAYING: "Can they actually border this? To actually make sure it gets ringfenced and make sure it doesn't go any further? It'll take some time for them to actually be able to prove that. Because it's one thing being fined, it's one thing actually paying damages to people, but then there are criminal actions potentially being taken as well. That's what they need to try and stop." Despite warnings from car dealers and consumer groups, Volkwagen still hasn't issued a recall. There's also the question of who knew what and when? Sources say the company will start naming and shaming at a senior board meeting on Friday. As well as appoint a new CEO. Audi chief Rupert Stadler is among the frontrunners, along with VW brand boss Herbert Diess. But they could have a tough job wrestling the wheel from Matthias Mueller - the Porsche chief was reportedly lined up even before Winterkorn got out of the car.