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Why I sold my VW shares a while back

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TUK020
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Why I sold my VW shares a while back

#201405

Postby TUK020 » February 14th, 2019, 6:37 pm

Not because of dieselgate - the hit happened, and I hung on until they recovered.
Not because I believe VW can't sort EVs. I think they have proved their ability to drive investment in platforms, and derive the benefit in multiple models/brands/segments - real smart milking of volume to drive returns.
Not because I believe that Tesla will come and eat their lunch. Ditto argument
But because the long term impact of automated driving will fundamentally change the private vehicle ownership model, and radically drive down the total number of cars sold.
And they paid a [expletive deleted] dividend

BobbyD
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Re: Why I sold my VW shares a while back

#201424

Postby BobbyD » February 14th, 2019, 8:32 pm

TUK020 wrote:Not because of dieselgate - the hit happened, and I hung on until they recovered.
Not because I believe VW can't sort EVs. I think they have proved their ability to drive investment in platforms, and derive the benefit in multiple models/brands/segments - real smart milking of volume to drive returns.
Not because I believe that Tesla will come and eat their lunch. Ditto argument
But because the long term impact of automated driving will fundamentally change the private vehicle ownership model, and radically drive down the total number of cars sold.
And they paid a Manure dividend


Timing might be debatable but I don't disagree there is a very good chance of car sales dropping dramatically. I think this a lot worse news for most other car makers though given VW's ability to develop platforms and derive the benefit in multiple models/brands/segments - real smart milking of volume to drive returns... Even more so if their recent moves to make those platforms available to the rest of the industry come to fruition. Somebody is going to have to be left solvent to build the cars which are needed...

I also think their reaction to electrification is promising, and shows they are not relying solely on their ability to bolt cars together and sell them for their future income stream.

I like the low dividend, it means lower currency charges in my ISA...

Now it might come tumbling down around their ears, but they are priced more like a Seat than a Bugatti so I'm happy to remain interested in both senses.


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