Volkswagen Just Lost Billions in Post-Scandal Stock Slide
Volkswagen AG lost about 15-billion euros (USD$16.9-billion) in its market value Monday following allegations that the German automaker cheated to pass U.S. emissions testing with its diesel cars.
After half a day of trading on the German stock exchange, VW stock dropped 19.3 percent to a three-year low of 130.20 euros. Volkswagen is facing a crisis after it was alleged that it used illegal software that made it easier for its diesel cars to pass U.S. emissions testing. The software was used on about 500,000 cars, and the result of this cheat is that that the affected cars actually produce up to 40 times more harmful nitrous oxides while driving than the amount recorded during the testing.
ALSO SEE: Volkswagen Used Illegal Software to Cheat Emissions Tests: EPA
Over the weekend, Dr. Martin Winterkorn, CEO of Volkswagen AG, said, “I personally am deeply sorry that we have broken the trust of our customers and the public.” VW has ordered an external investigation.
Volkswagen has already issued a stop-sale for its U.S. dealers to halt sales of remaining 2015 models with 2.0-liter TDI four-cylinder engines and affected 2016 models. This is the first step before a massive recall, and the Environmental Protection Agency (EPA) said the automaker could be fined up to $18-billion.
So far, models affected by the issue include the 2009-2015 Volkswagen Jetta, Beetle and Golf. The 2009-2015 Audi A3 is also affected, along with the 2014-2015 Passat. Diesel cars make up about a quarter of Volkswagen’s sales.
[Source: CTV News]
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Jodi has been obsessed with cars since she was little and has been an automotive journalist for the past 12 years. She has a Bachelor of Journalism from Ryerson University in Toronto, is a member of the Automobile Journalists Association of Canada (AJAC), and a jury member for the prestigious North American Car/Truck/Utility Vehicle of the Year (NACTOY). Besides hosting videos, and writing news, reviews and features, Jodi is the Editor-in-Chief of AutoGuide.com and takes care of the site's day-to-day operations.
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This is very bad VW! As a long time owner of VW vehicles, I feel violated! I'm all the more pleased now that a recently bought a Volvo SUV instead of VW
fucking germans ! remember these are the people who heartlessly killed milions of Jews, homosexuels.cripples ,twins. little people, our fathers and grand fathers and countless people in countries they overran. they don't care about anyone but themselves. when is the world going to understand this and boycott them back to the stoneage. if anyone needs to be nuked it is them. I think it is pretty obvious they will never change. you all should be ashamed to be from deutchland. Assholes !