Volkswagen defeat device scandal has sent the industry into a tailspin, the outcome of which is uncertain. What is clear is that markets around the world are stepping up their scrutiny into emissions testing procedures, engine efficiency and emissions levels. For vehicle manufacturers, this will require higher investment levels. Standard & Poor's (S&P) has warned that higher capex will likely limit free operating cash flow (FOCF) generation, which in turn could limit credit quality improvements throughout this year and next.
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