The values of Europe's automotive manufacturers, parts suppliers and retailers fell during the second quarter of this year, as measured by the Automotive News Europe/PricewaterhouseCoopers Transaction Services Shareholder Value Indices. For the second quarter in a row, all of Europe's publicly traded vehicle manufacturers recorded declines in shareholder value.
Automakers were down 13.1 percent following a 12.4 percent drop in the first three months of the year. The shareholder value of parts suppliers fell by 10 percent in Q2 while retailers slipped by 12 percent. The declines were much greater than those seen in European stock markets during the same period. So even though markets have been sharply affected by the UK’s decision to leave the EU, it is evident that the auto sector as a whole was on a downward trend of its own in advance of the referendum.
VW minimizes drop
VW, which had already seen its shareholder value halved in the third quarter last year as a result of the ongoing fallout from its emissions-cheating scandal, was the least affected in Q2 this year, with a 3.9 percent decline in shareholder value during Q2. The decline could have been worse given that during the quarter Norway’s $850 billion oil fund announced plans to sue the manufacturer and investors criticized VW's executive pay policy, proposed legal action and demanded a shake-up of supervisory board. VW also announced during the quarter that it would pay a $15.3 billion settlement for its cheating in the U.S. All other automakers tracked by ANE/PwC had double-digit declines in the quarter ranging from BMW’s 14.5 percent drop to Peugeot’s 28.2 percent tumble. BMW's decline came despite positive comments from investment analysts covering the company, with a majority now expecting it to outperform