Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

VW Stocks Dive Over GM Action

FRANKFURT -- Volkswagen shares tumbled nearly 6 percent Monday after General Motors said it would not let up on its legal battle against the German carmaker over the alleged theft of secret documents.


Volkswagen AG shares fell 34.50 Deutsche marks ($22.40) to 582 marks but pared some of the losses, which were tied to foreign sellers, to end bourse trade down 29.50 marks at 587 marks.


The hefty losses came after GM and its German unit, Opel AG, on Sunday denied they were close to settling a bitter 3-1/2-year dispute over GM's allegations that a top GM official who quit and joined VW in 1993 took along thousands of documents.


Speculation about a possible out-of-court deal has risen after VW production chief Jose Ignacio Lopez de Arriortua, at the center of the dispute, quit his post Friday -- one of the conditions GM laid down for any potential settlement.


But VW officials have said they would not meet the other conditions -- a public apology and payment for damages done by the Spanish-born Lopez, 55, for allegedly taking documents on GM's plans for a revolutionary plant and purchasing data.


VW on Monday also sought to stem the losses from the departure of Lopez, dubbed the "cost killer" and credited with the turnaround at VW after it posted a billion-mark loss in 1993, by appointing a number of executives to new positions.


VW management board chairman Ferdinand Piech has taken over Lopez's job for purchasing and production optimization and officials from VW's Czech and Spanish units were given group responsibility for Lopez's other management duties.


GM claims that Lopez started leaking information about Opel's plans as early as December 1992 and that he asked for a briefing on future plans just hours before he quit GM in March 1993 and took along a number of executives with him.