by Canadian Manufacturing.com Staff
Linamar does not expect VW emissions scandal to hit results
With sales to VW at less than 5 per cent, supplier does expect "material impact" from fallout
GUELPH, Ont—Linamar Corp. is not expecting any “material impact” to its operations or financial performance as a result fo the EPA’s accusations against Volkswagen AG.
“VW is a strategic customer of Linamar but VW would not currently be considered a material customer for the company as sales to VW represents less than 5 per cent of Linamar’s consolidated sales for the first six months of 2015,” the company said.
“As a result, any decline in sales as a result of the VW emission allegations is not expected to have a material impact to Linamar’s net earnings,” it added.
Early this week, the Environmental Protection Agency in the U.S. accused Volkswagen of manipulating emissions tests for its diesel vehicles. The company has apologized for breaking “the trust of our customers and the public.” Its CEO resigned Sept. 23, though he admitted no personal wrongdoing. Financial penalties as well as customer fallout from the incident are expected to cost the German automakers billions.