Tags: Jack Welch | Tar and Feather | Volkswagen Cheaters | CNBC

Jack Welch: 'Tar and Feather' Volkswagen Cheaters

Image: Jack Welch: 'Tar and Feather' Volkswagen Cheaters
Jack Welch (Getty Images)

By    |   Thursday, 24 Sep 2015 02:40 PM

Former General Electric chief and management expert Jack Welch said Thursday that Volkswagen, so far, has appropriately handled the crisis.

"They made the right first move because ... axing the CEO had to happen," he told CNBC.

"Now they have to go in and get a whole crowd of them and get them hung in the town square," Welch said. "Here's a place where truth and trust didn't exist."

"I would tar and feather them," he said.

Auto giant Volkswagen searched Thursday for a new chief to steer it out of a global pollution cheating storm, as suspicions over diesel car emissions spread for the first time to fellow German manufacturer BMW, AFP reported.

Shares in top-of-the-range automaker BMW skidded nearly 10 percent at one point after the weekly Auto Bild reported that emissions from one of its diesel models were 11 times higher than European Union norms.

But BMW said it had not cheated in pollution tests, as VW has admitted to doing.

"The BMW group does not manipulate or rig any emissions tests. We observe the legal requirements in each country and adhere to all local testing requirements," it said in a statement.

"We are not familiar with the test mentioned by Auto Bild concerning the emissions of a BMW X3 during a road test. No specific details of the test have yet been provided and therefore we cannot explain these results," it said.

The test on BMW's X3 xDrive was carried out by the International Council on Clean Transportation, which had been at the origin of revelations of emissions cheating by Volkswagen.

After initially plunging 9.7 percent on the report, BMW shares were showing a loss of 6.8 percent by mid-afternoon.

Germany's powerful car industry has been reeling over the revelations that Volkswagen fitted up to 11 million of its diesel cars with devices capable of fooling emissions tests.

The scandal, which emerged last Friday when US officials publicly accused the company of cheating and launched a probe, has now gone global with French and South Korean authorities also announcing investigations.

The biggest bank in the Nordic region, Nordea, said it was barring its traders from buying Volkswagen shares and bonds for six months over the emissions scandal.

"We are sending a clear message that this is unacceptable," Sasja Beslik, head of responsible investments at Stockholm-based Nordea, told AFP.

"We believe this action, or lack of action, from the management is outrageous. It's poor judgement in terms of business, but it's also very costly from a financial point of view," he said.


© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Former General Electric chief and management expert Jack Welch said Thursday that Volkswagen, so far, has appropriately handled the crisis.
Jack Welch, Tar and Feather, Volkswagen Cheaters, CNBC
425
2015-40-24
Thursday, 24 Sep 2015 02:40 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved