Chapter 598

Just after Wolfgang's victory, Karim and Wolfgang signed a private agreement, which stipulates that once the federal government of Germany repeals the "Volkswagen Company protection law" one day, Wolfgang will transfer all the VW company shares held by the Porsche family to Karim, and Karim will exchange the equivalent shares of Porsche. With this agreement, Karim's acquisition of Volkswagen has finally taken a solid step.

So far, including Wolfgang's stake in VW, Karim and Donia have taken a quarter of VW's. However, because of the Volkswagen corporate Protection Act, the acquisition cannot continue. And Karim and Donia can't announce their co-operative relationship. Just a few days ago, the Frankfurt Securities Regulatory Commission issued a warning letter to EVA and Karim in accordance with the Volkswagen Corporation Protection Act, warning them that they would face legal sanctions if they further acquired the shares of Volkswagen Corporation. The Lower Saxony government is also negotiating cooperation with domestic financial institutions in Germany, Strive to dilute EVA and Karim's shares by issuing additional shares.

This serious lack of fairness rules will naturally cause dissatisfaction of the United States, the country of registration of Columbia bank, and Switzerland, the country of registration of mediterranean shipping. Just one week after the Frankfurt Securities Regulatory Commission issued a warning, the US federal court ruled that the actions of Volkswagen and the federal government constituted unfair competition. In retaliation, the US will completely ban the continued sales of Volkswagen's products in the US. This time, the U.S. trade department once again issued a ban comparable to the power of nuclear weapons. The U.S. market decided to close the door to the Germans and let them have a good introspection.

As soon as the news came out, Volkswagen's shares began to plummet on the Frankfurt stock market that day. Germany's trade department immediately applied to GATT for trade arbitration. Not long ago, GATT received complaints from the United States, Switzerland and other countries about the German government's setting up trade barriers to block the normal business behavior of foreign investors. Driven by these two news, the mainstream media of various countries have paid close attention to the trade dispute between virtue.

Just a week after the ban came into effect, a large number of Volkswagen products that had been shipped to the US ports began to be expelled by the US customs, and US agents began to cancel orders. Ships after ships of Volkswagen cars were re shipped back to Germany, which made the board of directors of Volkswagen bleed.

All of a sudden out of so much inventory, how to digest. This batch of cars can't be consumed in the European market. It's a pity in Asia! Japan is also a big and powerful automobile manufacturing country. So the importance of the US market is self-evident.

VW's board of directors soon began to exert pressure on the German government. Premier Kohl met with VW's management representatives and listened to their opinions. However, he told these people tactfully that according to the relevant rules of GATT, Volkswagen's appeal is likely not to be supported. If the GATT side does make the above ruling, the federal government can do nothing.

"Can't we unite with European countries to sanction the United States in turn?" The proud German businessman said angrily, but his words almost amused Prime Minister Kohl.

"By uniting European countries to sanction the United States, we were almost sanctioned by the whole Europe at the EC meeting. I want you to think about it objectively. Do you really think that the Volkswagen Corporation protection act can protect the public? Now the Americans are close to telling you the answer. Are you naive enough to think that Europe will be on our side? Gentlemen, I have to admit that Volkswagen's cars are very competitive, but the competition is not limited to the product itself. If you don't give up your fantasy, you can't get the same fair treatment in other countries' markets. " With these words, Kohl left alone, leaving only representatives of Volkswagen sitting in this room looking at each other.

As the largest single shareholder of Volkswagen, the Lower Saxony government soon received the impact from the decline of stock price. In the state parliament, the opposition launched a no confidence proposal to the current state government, accusing the state government of being too partial to VW, which caused the stock price of VW to suffer a heavy setback, and made the huge amount of money spent by the state government in the early stage of the increase in shareholding float.

"Taxpayers' money is not wasted in this way. If the money is spent on health care, education and the environment, instead of helping Volkswagen to snipe foreign investors, our finance will not suffer such a big loss!" Some State Councillors criticized it harshly.

"We may think that the sanctions imposed by the Americans are only temporary, but we ignore the American demand that we terminate the public corporation Protection Act. Only by agreeing to the requirements of the United States, can Volkswagen be like the U.S. market again! And what our state governments are doing, they are still increasing their holdings of Volkswagen stock, and before things turn around, we will continue to bear the losses from the stock decline. " The media also questioned the policy of the Saxony government.

Soon, under the opposition of public opinion, the state government of Saxony had to give up the plan to increase its shareholding in Volkswagen. However, the termination of the public company protection law is still not included in the discussion.

VW group suffered heavy losses due to the sales ban in the U.S. market. According to the rules of Frankfurt market, VW group released its financial report for the second quarter on schedule. According to the financial report, VW will suffer a huge loss of several billion dollars in the second quarter, mainly because of the restrictions of the sales ban in the U.S. market.

After the financial report was issued, the major products and institutions lowered the rating of Volkswagen, which had a further impact on the financing of Volkswagen. At this time, a message pushed the public towards the abyss. According to the final ruling of GATT, the Volkswagen Corporation protection act of the Federal Republic of Germany was found to be in violation of GATT's provisions on free trade, so GATT ruled that the German government violated the trade rules. This means that any Contracting Party to GATT can ban the sale of Volkswagen in its own country for the same reason. In this way, Volkswagen's last straw is gone.

Since the "Volkswagen protection law" was promulgated by the state government of Saxony, after the decision of GATT came out, Karim and Donia also hired lawyers to bring a lawsuit to the Supreme Court of the Federal Republic of Germany, accusing the state government of discrimination against foreign investors. All of a sudden, the Volkswagen Protection Act is in danger. Because of the drag of Volkswagen, the domestic auto parts manufacturers in Germany also suffered heavy losses. The Volkswagen protection law, originally used to protect their own interests, has changed from a talisman of the German auto industry to a life threatening talisman.