Volkswagen stock drops 20% on US diesel recall probe

PimpHandStrong

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Volkswagen shares fell over 20 percent on Monday, after it told U.S. dealers to halt sales of some 2015 diesel cars, following regulators' discovery that software it designed for the vehicles gave false emissions data.

The company said on Sunday that it had launched an investigation.

In a statement published by the carmaker on Sunday, Chief Executive Officer Martin Winterkorn said, "I personally am deeply sorry that we have broken the trust of our customers.

"Volkswagen has ordered an external investigation of this matter," he said.

Shares in Volkswagen were down 18.6 percent, at Europe's close.

German authorities are set to probe Volkswagen for similar emissions manipulation in Germany, according to Dow Jones.

Volkswagen must now work closely with U.S. authorities, the German Transport Ministry spokesperson told newswires, adding that they expect the company to deliver reliable information.


VW could face civil penalties of $37,500 for each vehicle not in compliance with federal clean air rules. Some 482,000 four-cylinder VW and Audi diesel cars sold since 2008 are involved in the allegations.

The U.S. Environmental Protection Agency (EPA) said on Friday the software deceived regulators measuring toxic emissions, adding that Volkswagen could face fines of up to $18 billion as a result.

The Detroit News reported late Friday that VW dealers still had some 2015 diesel Jetta, Passat and Beetle cars for sale.

A VW representative on Sunday confirmed the partial halt of sales of the affected vehicles but did not give any numbers.

Winterkorn said, "We do not and will not tolerate violations of any kind of our internal rules or of the law," adding that the company was fully cooperating with the relevant agencies.


"This is not your usual recall issue, an error in calibration or even a serious safety flaw," Bernstein analysts wrote in a note on Sunday. "There is no way to put an optimistic spin on this - this is really serious."

Cynthia Giles, an enforcement officer at the EPA, said on Friday the cars in question "contained software that turns off emissions controls when driving normally and turns them on when the car is undergoing an emissions test".

The feature, which the EPA called a "defeat device," masks the true emissions only during testing. When the cars are on the road, they emit as much as 40 times the level of pollutants allowed under clean air rules meant to ensure public health is protected, Giles said.

"We have admitted to it to the regulator. It is true. We are actively cooperating with the regulator," a Volkswagen spokesman said on Sunday.

If each car involved is found to be in noncompliance, the penalty could be $18 billion, an EPA official confirmed during the telephone conference on Friday.
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Volkswagen falls over 20%, to halt US diesel car sales
 
unit321

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Since they started building Jettas and Golfs in Mexico, quality is not job one. :russ:
 
unit321

unit321

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keepemup said:
The issue also affects some Audi models. I think the A3 from 2008 - now in particular.
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Yes. All the Audi TDI models that used the same diesel powertrains as in the VW's with faked-out emissions tests.
 
unit321

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Recalls blowing out VW's backside
All VW diesels from 2008 to brand new 2015 cars. That means the new diesel cars that just got delivered needs to get the recall fix before you even touch it.

Drive clean diesel brehs.
 
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