Volkswagen shares plunge 23 pc after CEO admits to cheating in diesel emissions test

by Gareth Mankoo

A couple of days ago the Environmental Protection Agency (EPA) accused automaker Volkswagen of manipulating emissions tests for nearly 500k vehicles. In response to the allegations the company’s CEO, Martin Winterkorn apologized and ordered that its US dealerships to stop selling cars that were impacted by the probe. The EPA claims that the German carmakers installed software on 482,000 diesel cars in the USA to enable them to cheat emission tests. The impact was that the cars that failed the test emitted harmful pollutants at about 40 times the acceptable standard, wich could potentially lead to severe health hazards such as asthma.

“I personally am deeply sorry that we have broken the trust of our customers and the public,” said Martin Winterkorn, Volkswagen’s CEO, in a statement. “We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly and completely establish all of the facts of this case.” While stocks of the car came crashing down, a plunge in the sales figures for the coming period is most likely.

[ Via : Usatoday]

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