German auto giant Volkswagen today said 11 million diesel cars worldwide are equipped with devices that can cheat pollution tests, a dramatic expansion of a scandal that immediately sent its shares plummeting by another 20%.
Authorities from France to South Korea to the US announced investigations and threatened legal action, prompting Volkswagen to announce that it was setting aside 6.5 billion euros ($7.3 billion) in provisions for the third quarter to cover the potential costs of the scandal.
VW shares, which dived 17% on Monday, plunged by another 23% to a low of 101.30 euros during trade on the Frankfurt stock exchange as the automaker’s new revelations, including a warning that it will have to lower its profit outlook, sent investors fleeing.
“Further internal investigations have shown that the software concerned is also installed in other diesel vehicles,” VW said. “Anomalies have shown up in around 11 million cars worldwide that are equipped with a specific engine type,” the carmaker said. — AFP
Shares nosedive 23%
France, South Korea and US have announced investigations and threatened legal action against VW
VW shares plunged by another 23% to a low of 101.30 euros during trade on the Frankfurt stock exchange
VW said internal investigations have shown that the software concerned is also installed in other diesel vehicles.
Authorities from France to South Korea to the US announced investigations and threatened legal action, prompting Volkswagen to announce that it was setting aside 6.5 billion euros ($7.3 billion) in provisions for the third quarter to cover the potential costs of the scandal.
VW shares, which dived 17% on Monday, plunged by another 23% to a low of 101.30 euros during trade on the Frankfurt stock exchange as the automaker’s new revelations, including a warning that it will have to lower its profit outlook, sent investors fleeing.
“Further internal investigations have shown that the software concerned is also installed in other diesel vehicles,” VW said. “Anomalies have shown up in around 11 million cars worldwide that are equipped with a specific engine type,” the carmaker said. — AFP
Shares nosedive 23%
France, South Korea and US have announced investigations and threatened legal action against VW
VW shares plunged by another 23% to a low of 101.30 euros during trade on the Frankfurt stock exchange
VW said internal investigations have shown that the software concerned is also installed in other diesel vehicles.
