REPORT OF ECONOMY
Volkswagen scandal biggest threat to the German economy as the Greek debt crisis.
The largest automaker in Europe faces fines and 11 billion 6 billion more in costs and lost profits after 11 million cars are expected to have cheated their way through pollution tests.
Volkswagen became more downside risk for the German economy as the Greek debt crisis, said chief economist Carsten Brzeski ING.
Volkswagen is the largest car manufacturers in Germany and one of the largest employers, with more than 270,000 jobs in the country of origin and even more work for suppliers.
And critics have begun to question whether Volkswagen acted as a lone wolf - or if disappointment is a practice across the industry.
If it is a case of the latter, the German and financial power of Europe seems extremely vulnerable economy.
Germany has the largest economy of the euro, but is highly dependent on the automotive industry.
It's estimated that one in six jobs depends German automotive industry, and 17 9 percent of exports.
Michael Hewson, manufacturer CMC Markets chief analyst, said a particular concern is the spill over effects of the drama surrounding Volkswagen will have on the economy in general German in the weeks and months to come at a time when it seems to be evidence that growth could slow in the euro area.
The events of this week have put a huge dent in the work of the panel of how the German automotive industry is perceived by its customers worldwide.
The implications for German GDP growth could be important in the coming months if the global confidence is lost, not only for VW, but also the rest of the European car industry, if evidence is found that we aren t see an isolated case.
Germany underpinning the euro area with most countries of the single currency, including Spain, Greece, Italy - and France - struggling against huge debts and stagnant economies.
M. Hewson added with Europe's second largest economy in France already in trouble, with GDP expected to be confirmed at 0 percent, Europe can not afford a setback to its main growth engine of 'Germany.
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Volkswagen shares fell nearly 20 percent Monday, another 18 percent Tuesday and appears set for further losses in trading today.
Amid concerns about what the cries mean for the rest of the automotive industry Daimler, Mercedes, BMW and Porsche have also seen their share prices take a hit.
Since the scandal broke Friday top share index of Germany DAX shed almost six percent of its value.
Financial Express Research analyst Charles Younes, said what happened has the potential to really affect long-term VW, and in turn the German and wider European automotive sector.
Especially as the basis of US consumers always saw European cars as cleaner than their American counterparts.
This news will have enormous financial implications and its reputation and considering that the Germans are considered above board and there is a level of trust given to this country easily MADE ramifications can last for years.
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Volkswagen scandal could hit the German automotive industry and in the euro area economy experts say City &, volkswagen, scandal, German.