Volkswagen AG (ADR) Reports To Have Lowest Death And Injury Claims

Volkswagen AG (ADR) 2014 Reports To Have Lowest Death And Injury Claims

Volkswagen’s number of death and injury claims over last decade is well below industry average

Volkswagen AG (ADR) (OTCMKTS:VLKAY) reported the lowest death and injury claims, compared to any major US automaker over past 10 years. According to Bloomberg, the company’s reported rate was nine times less than that reported by 11 biggest automakers’.

Two of Volkswagen’s rivals, Honda Motor Co Ltd (ADR)(NYSE:HMC) and Fiat Chrysler Automobiles NV(NYSE:FCAU) US division revealed that they have underreported claims to the US government. Volkswagen’s claim rate still remains lower than the underreported claims of these automakers, according to the data available.

The reporting of death and injury claims is the part of National Highway Traffic Safety Administration’s (NHTSA) early-warning system to mark vehicle’s defect-trends in order to minimize causalities.

Bloomberg reported that NHTSA focuses to improve structure of informing potential defects, mainly through monitoring automakers reports and making its analysis more efficient.

The executive director of the Washington-based watchdog Center for Auto Safety, Clarence Ditlow, said that the claims reported by Volkswagen are so small that he doubts how they were compiled.

“NHTSA doesn’t have the resources to police all of this, but now they’re asking the automakers to tell them whether they’re in compliance,” Mr. Ditlow said. “For the automakers, it’s a time of reckoning.”

In January, Honda was fined $70 million for understating claims to NHTSA. Previous month, Fiat’s US unit did the same, violating regulatory requirement.

General Motors Company (NYSE:GM), the largest US automaker, reported the maximum number of claims, around 524 incidents per million vehicles. In contrast, Volkswagen has the lowest rate of 34 incidents per million. The average is about 301 per million vehicles on the road. Three giant companies, Toyota Motor Corp. (ADR) (NYSE:TM), GM, and BMW are above the average rate. The underreported rate of Honda was 78, while it was 101 for Fiat. Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) disclosed approximately 78 accidents per million vehicles, complying fully with the regulatory obligations.

Recently, Volkswagen US CEO, Michael Horn, disclosed that the company has pulled out its application for EPA certification for its upcoming 2014 diesel models, delaying sales of new models in the US.

We have studied investments from Netflix, new contracts signed by Orbital, SolarCity earnings report and their negotiation with Tesla for the acquisition of the Powerball battery, the problems that ARCH coal is facing, how IBM is investing in the treatment of the Zika virus, how Moon Express is planning to mine minerals in the moon, and how Citigroup is engaged in commodity trading.

We follow a lot Tesla here, from the fundamental analysis and from the technical as well. See how the Chevy Bolt and the Tesla 3 are dimensioning the evolution of the price of this shares and how this could affect technical analysis, and how the Autopilot functionality is working: the evolution of the Autopilot software has always influenced the prices of their stocks. Tesla Model S 70D is considered the “car of the century”, not by us of course, but we are interested to see how these awards affect the evolution of the stocks. Tesla and other companies signed an agreement so that autobraking became the standard in 2022. A trend in the automobile industry started by Mercedes Benz and Tesla, is having a platform to sell pre-owned vehicles: now General Motors is joining that trend as well.

We have studies how the stock slump of GoPro should be considered not only from the view of technical analysis. Also, check the functionality from Facebook, the “login approval” and if it really protects users or other interests. The reports from Volkswagen about their very low injury claims, how now other companies in China can use the name “IPhone” apart from Apple. We continue in China to learn about the Marketplace Alliance Program from Alibaba, and the joint investment in CloudFlare from Google Inc, Microsoft Corporation, Qualcomm, and Baidu.

About Google, a company we follow a lot here, I want to see how they have entered in the batteries market and how this will affect their current projects and the evolution of the stocks. Interesting are the Chrome updates to decrease CPU usage.

We analyze the effects of the position of Disney in the dispute between Netflix and Time Warner, so we can understand how Disney is shifting its business after selling its stake in Fusion.

We discuss briefly how Oracle adressed the changes in the cloud-computing industry, why Morgan Stanley is optimistic after the pandemic and the Brexit, the divestment in Dell regarding Perot Systems, and the effects of the huge minimum wage rise in Costco. Chipotle is cutting the executive compensation, the issues that BP is facing, what happens with Macy´s earnings and how fundamental analysis can be done in those cases. About Apple, we analyze the effect of the launch of this product Apple Watch where sales performed very irregularly.

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Author D Laidler

I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go.  I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.

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