Volkswagen cheating on emissions tests: carmaker’s trouble have just begin
FRANKFURT: German carmaker Volkswagen is facing one of its worst periods in a long, long time. Volkswagen has finally admitted to rigging US emission tests and this is going to come with serious consequences for the company.
Following the disclosure, the Volkswagen shares tumbled and tumbled, settling at least 13 per cent lower on the Frankfurt stock exchange yesterday, later going down further to around 23 percent. The company has finally admitted that some of its diesel cars in the United States were actually fitted with software that gave false emissions data.
This is going to be a severe blow to company operations at least in the United States. Car giant, Volkswagenâ€™s shares fell by as much as 13.23 per cent to 140 Euros following the disclosure.
United States is a major market for the car company that is known for making top class vehicles. The German car maker said that that the US environmental protection agency and the California Air Resources Board (EPA and CARB) had found that while testing diesel cars of the Volkswagen Group they had “detected manipulations that violate American environmental standards.”
Later the company CEO Martin Winterkorn went on to issue an apology and said the group had ordered an external investigation into the matter. Nonetheless this is not going to do any sort of damage control. Damage has already been made and there are reasons to believe that the company may be faced with billions of dollars in fines.
Martin Winterkorn in his apology letter said, â€œThe board of management takes these findings very seriously. I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly and completely establish all of the facts of this caseâ€.