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You can find the current article at its original source at http://www.theguardian.com/business/2015/sep/21/volkswagen-shares-plunge-claims-falsified-emissions-data-us-epa
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| Volkswagen shares plunge after US says carmaker falsified emissions data | Volkswagen shares plunge after US says carmaker falsified emissions data |
| (about 1 hour later) | |
| Shares in Volkswagen lost more than a fifth of their value as investors responded to accusations in the US that the German carmaker falsified emissions data – an action that could attract penalties of up to $18bn (£11.6bn). | |
| The Environmental Protection Agency in the US said on Friday that VW had installed illegal “defeat device” software to cheat emission tests, allowing its cars to produce up to 40 times more pollution than allowed. The US government ordered VW to recall 482,000 VW and Audi cars produced since 2009. | The Environmental Protection Agency in the US said on Friday that VW had installed illegal “defeat device” software to cheat emission tests, allowing its cars to produce up to 40 times more pollution than allowed. The US government ordered VW to recall 482,000 VW and Audi cars produced since 2009. |
| Related: VW software scandal: chief apologises for breaking public trust | Related: VW software scandal: chief apologises for breaking public trust |
| VW shares dropped as much as 22% to €26.40 on the DAX index in Frankfurt, their biggest intraday fall for almost seven years. | |
| “I personally am deeply sorry that we have broken the trust of our customers and the public,” Martin Winterkorn, VW’s chief executive, said in a statement on Sunday. “Volkswagen has ordered an external investigation of this matter.” | “I personally am deeply sorry that we have broken the trust of our customers and the public,” Martin Winterkorn, VW’s chief executive, said in a statement on Sunday. “Volkswagen has ordered an external investigation of this matter.” |
| Volkswagen suspended sales of cars containing the company’s four-cylinder turbo direct injection (TDI) engine on Friday after the investigation. The “clean diesel” engine is commonly used in models including VW’s Beetle, Golf, Jetta, Passat and the A3 luxury compact made by VW-owned Audi. | Volkswagen suspended sales of cars containing the company’s four-cylinder turbo direct injection (TDI) engine on Friday after the investigation. The “clean diesel” engine is commonly used in models including VW’s Beetle, Golf, Jetta, Passat and the A3 luxury compact made by VW-owned Audi. |
| Europe’s biggest carmaker could face penalties of $37,500 for each car not in compliance with clean air rules. | Europe’s biggest carmaker could face penalties of $37,500 for each car not in compliance with clean air rules. |
| David Bailey, professor of industrial strategy at Aston University, said: “This could be very bad indeed. They are recalling cars and that will cost them, there may be a reputational issue and there could be fines that could run into billions. If it is the case that they have been trying to hoodwink regulators, its a really dumb thing to do.” | |
| Bailey said the US allegations could have wider reverberations for the car industry’s efforts to reassure regulators about its environmental impact. Shares of VW’s German rival carmakers also fell. BMW shares dropped 3.7% and Daimler’s lost 4.2% | |
| “Regulators will look at this more closely now,” Bailey said. “There has been growing concern about diesel cars and nitrous oxide emissions. The industry has been trying to make the case that the latest regulations largely deal with that issue but regulators will now look more closely at whether they have.” | |
| The accusations by the agency emerged as VW was seeking to shake off doubts about its leadership at a supervisory board meeting on Friday. Former chairman Ferdinand Piech quit in a power struggle with Winterkorn over strategy five months ago. | The accusations by the agency emerged as VW was seeking to shake off doubts about its leadership at a supervisory board meeting on Friday. Former chairman Ferdinand Piech quit in a power struggle with Winterkorn over strategy five months ago. |
| The company is also grappling with falling sales in China and efforts to boost profitability. | The company is also grappling with falling sales in China and efforts to boost profitability. |
| “This disaster is beyond all expectations,” Ferdinand Dudenhöffer, head of the Center of Automotive Research at the University of Duisburg-Essen, told Reuters. |