Automaker revealed that 11 million of its cars worldwide could be affected, wiping out a third of the company’s market value and threatening to topple its CEO
Frankfurt: The Volkswagen pollution cheating scandal escalated dramatically yesterday when the automaker revealed
11 million of its cars worldwide could have been fitted with pollution cheating devices. This announcement wiped out a third of the company’s market value and now threatens to topple its chief executive.
CEO of Volkswagen AG Martin Winterkorn. Pic/AFP
The US has opened a criminal investigation into the scandal. Authorities from France to South Korea also said they would investigate, prompting Volkswagen to announce that it was setting aside €6.5 billion($7.3 billion) in provisions for the third quarter to cover the potential costs of the scandal.
When the manipulation of pollution tests was first publicly revealed on Friday, the US authorities said it concerned half-a-million VW diesel vehicles in the US.
“Further internal investigations have shown that the software concerned is also installed in other diesel vehicles,” VW said in a statement.
“Anomalies have shown up in around 11 million cars worldwide that are equipped with a specific engine type,” added the car manufacturer.
Rs 48,000Cr The approximate amount set aside by Volkswagen for the third quarter to cover the potential costs of the scandal