Uber Appeal
As its stock value continues to decline, Uber is appealing the loss of its London, U.K. operating license.
In late November, Uber saw its London operating license revoked for the second time—the first time being back in 2017. Transport for London (TfL) gave the ridesharing giant 21 days to appeal the case, giving the company until Dec. 16 to form an appeal.
Sure enough, Uber filed its appeal on Dec. 13, giving itself as much time as possible to reach a solution with TfL. Uber’s London operations are allowed to continue amid the appeal process.
Market analysts are estimating that, should Uber lose its ability to operate in London—one of its top-five largest global markets—the company’s revenue could suffer hits of up to $480 million per year.
The ride-sharing giant made its Wall Street debut in May, with shares priced around US$45 each. On day one, Uber stock finished well below its placing price—closing at US$41.57—and has only finished above US$45 a handful of times back in June 2019.
As of Dec. 13, Uber shares closed at $28.49—down 31.46 percent from its May debut.
Delayed Decision
Volkswagen will plead guilty to all 60 charges it faces for allegedly breaking the Canadian Environmental Protection Act, but it could be a while before the automaker sees sentencing.
Between 2008 and 2015, Volkswagen allegedly imported 128,000 cars into Canada that violated the nation’s emissions standards. While Volkswagen intends to take full responsibility, sentencing could be delayed as the judge considers whether victim impact statements will play a role in the Canadian case.
An unnamed lawyer representing an environmental group submitted to the judge, saying that the court should hear victim impact statements before reaching a sentencing decision.
Traditionally, victim impact statements—should they be heard—are brought forward by the Crown rather than a third party.
The judge is now considering whether it would be appropriate to hear victim impact statements in an environmental law case. The decision has been reserved until Thursday, Dec. 19.
In 2015, Environment and Climate Change Canada launched an investigation into the importation of certain vehicle models allegedly equipped with a prohibited ‘defeat device’ software that reduced the effectiveness of emissions control systems during normal vehicle use. The case has been repeatedly criticized by environmental experts and lawyers for taking so long.
So far, emissions-related legal issues have cost the company about $33 billion in fines, vehicle refits and assorted legal costs.
More than 20 countries and governments have taken action against Volkswagen and, in 2016, the United States charged the automaker US$4.3 billion in penalties in the largest fee levied by the U.S. government against a car company.
Bring On Brexit
The U.K. general election took place last week, with Boris Johnson and his Conservatives claiming a majority government.
Throughout their campaign, the Conservatives preached a manifesto of ‘get Brexit done,’ with the party aiming to meet the current departure date of Jan. 31, 2020.
Britain’s automakers are at the forefront of Brexit uncertainty amid a 14 percent slump in manufacturing. If the Conservatives follow through on their promise to leave the European Union, the industry’s current free trade access to EU markets will be disrupted, and the free movement of components back and forth along complex supply chains—such as just-in-time deliveries—will be slowed or blocked.
The mantra ‘get Brexit done’ suggests a ‘hard’ exit from the EU—one that the nation could be unprepared for in terms of trade deals—and Nissan has said that such a strategy could threaten its entire European business model.
Nonetheless, car companies are hopeful that a Conservative government can help them prepare for the future and hopes Britain keeps close ties with the EU.
