[Fwd: From the WSJ]

["S. Joseph Mann" <joem@pswtech.com>]

This is a multi-part message in MIME format.
- --------------DFF1E2C03B9D0E5C6AB54E8F
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit

Thought you all might find this interesting.  Pay close attention to the
last paragraph.  Do we have anyone over there with a camera?! :-)

Later,

Jettamann

- --------------DFF1E2C03B9D0E5C6AB54E8F
Content-Type: message/rfc822
Content-Transfer-Encoding: 7bit
Content-Disposition: inline

Received: from dora.pswtech.com (dora.pswtech.com [198.3.202.235])
	by copernicus.pswtech.com (8.8.5/8.8.5) with ESMTP id IAA07376
	for <joem@pswtech.com>; Tue, 9 Sep 1997 08:28:34 -0500 (CDT)
Message-ID: <34154BBC.6D4B47B1@pswtech.com>
Date: Tue, 09 Sep 1997 08:14:36 -0500
From: Lorne Wilson <lorne@pswtech.com>
X-Mailer: Mozilla 4.01 [en] (Win95; I)
MIME-Version: 1.0
To: joem@pswtech.com
Subject: From the WSJ
X-Priority: 3 (Normal)
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit

Thought you might be interested...

	lorne

	    VW's Shares Tumble
            14%;
            Rights-Issue Plan
            Astounds

            By BRANDON MITCHENER 
            Staff Reporter of THE WALL STREET JOURNAL

            FRANKFURT -- Volkswagen AG
            shares skidded 14% Monday as irate
            investors sold the German car
            maker's stock in the wake of the
            company's announcement of a seven
            billion mark ($3.88 billion) rights issue.

            VW's stock plunged 185 marks in floor
            trading in Frankfurt to 1,165 marks a
            share, but rebounded slightly in
            electronic dealings later in the day to
            1,190 marks. Monday's tumble
            followed a 12% plummet in electronic
            trading Friday after the rights issue
            was announced.

            The announcement was an abrupt
            turnaround after more than a year of
            vigorous denials by VW officials of any
            plans for a rights issue, or indeed any
            need for one. "People are hopping
            mad that VW is taking it so lightly,"
            said one equities salesman who spent
            the day trying to calm investors.

            Investors were angered both by the
            size of the issue -- one of Germany's
            biggest offerings ever -- and by the
            fact that VW has so far been vague
            about its reasons for the move. VW
            officials on Friday said only that the
            funds raised would be used to fuel
            growth in emerging markets,
            particularly in the Asian-Pacific region
            and Latin America. VW officials
            couldn't be reached for comment
            Monday.

            While a major presence in markets
            from China to Brazil and Mexico, VW
            has been confronted with new
            competitors selling cars that are far
            more modern than its own. Analysts
            speculated the funds could be used to
            completely overhaul the company's
            product lines in countries such as
            China and Brazil.

            One analyst said the company also
            appeared to need money to meet new
            German capital-adequacy
            requirements for the company's
            consumer bank, Volkswagen Bank.
            The bank has been growing rapidly
            thanks to new products and low
            interest rates that encouraged
            consumers to finance their new car
            purchases.

            Despite the sharp share-price decline,
            most analysts said VW remains on
            their short list of automotive stocks
            likely to outperform the market in
            coming years. Deutsche Morgan
            Grenfell was encouraging investors to
            use the price slump as an opportunity
            to buy.

            VW's stock slump came as an
            unwelcome side act to the Frankfurt
            International Motor Show, which
            begins Thursday. The buying public
            gets its first look at the new VW Golf
            at the show, which is the year's
            biggest in Europe.


- --------------DFF1E2C03B9D0E5C6AB54E8F--