Volkswagen shares drop 10% after investigation reveals “irregularities” in carbon dioxide emissions levels – now scandal could include petrol models.
VW shares have dropped after it reported finding “irregularities” in CO2 levels affecting around 800,000 group vehicles.
The German car-maker has said the problem, found whilst investigating the diesel emission scandal, could cost approximately €2bn (£1.4bn).
Whilst the company has not yet said what specific brands are affected, a Volkswagen spokesman told BBC News that Audi, VW, SEAT and Skoda “could be affected”. Another spokesperson told the Financial Times that the vehicles affected “all have 1.4 litre engines”.
Volkswagen has also given no indication about where the affected vehicles were sold.
Petrol cars not ruled out
In a statement, published late on Tuesday, Volkswagen implied that the scandal could now involve petrol cars for the first time.
Volkswagen said: “Under the ongoing review of all processes and workflows in connection with diesel engines it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process. The majority of the vehicles concerned have diesel engines.”
The previous finding, revealed by the US Environmental Protection Agency in September, was related to NOx (Nitrogen Oxide) emissions and involved the use of illegal cheating software, known as ‘defeat devices’.
It is yet not clear if the new findings, relating to CO2, involve similar ‘defeat devices’, with VW stating: “A reliable assessment of the scale of these irregularities is not yet possible.”
Matthias Muller, VW’s chief executive, said: “From the very start I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth. That is the basis for the fundamental realignment that Volkswagen needs”.
In a separate statement, Volkswagen’s Supervisory Board expressed deep concern and said that together with the Board of Management, they must “rebuild trust”.
Volkswagen has once again reiterated that the safety of the vehicles affected is in no way compromised.
It has since been revealed that those affected will not have to pay any additional tax. It is understood that VW has written to the European Union to say it will front the bill for any extra tax costs owners may face.
Vehicle Excise Duty (VED) bands are dictated by CO2 in the UK, so any potential tax rise by the Government will be fronted by Volkswagen. It is worth reminding readers that Transport Secretary, Patrick McLoughlin previously stated - related to the original emissions scandal - vehicles fitted with 'defeat devices' will not have to pay anymore road tax.