That plunge was driven by the revelation that the emissions scandal, heretofore confined to the company’s diesel-engined cars, also involved a few of its gasoline or petrol engines as well. The production and sales of the 2014-2016 diesels Cayenne SUV has also ceased.
Advertisement
“In light of yesterday’s news, we ask that Volkswagen provide a few basic facts and clarifications regarding the software installed in certain make and model year vehicles and how such devices affect the operation of the vehicles”, wrote the committee.
Germany’s Volkswagen, already reeling from the fallout of cheating on USA emissions tests for nitrogen oxide, said Tuesday that an internal investigation has revealed “unexplained inconsistencies” in the carbon dioxide emissions from 800,000 of its vehicles – a development it said could cost the company another 2 billion euros ($2.2 billion).
As the crisis deepened, VW said it had told US and Canadian dealers to stop selling recent models equipped with its 3.0 V6 TDI diesel engine, while the Moody’s agency downgraded the firm’s credit rating.
Volkswagen says as many as 11 million cars may have been fitted with software to cheat diesel emissions tests. Computers detected when the cars were being tested on treadmills, turning on controls that limit emissions of harmful nitrogen oxide.
The 1.4-litre, 1.6-litre and 2-litre TDI diesel engines account for the vast majority of affected cars.
“If relevant, how numerous vehicles that were newly registered in your country in the calendar years 2012, 2013 and 2014 were possibly affected”, the letter asked. In its third-quarter earnings, Volkswagen has recorded $7.4 billion as a cost to pay for fixing its vehicles. An official with the Environmental Protection Agency (EPA) in the United States said the agency was still studying the Volkswagen statement.
“VW is leaving us all speechless”, said Arndt Ellinghorst, a London-based analyst with Evercore ISI. In Europe, Volkswagen is due to recall 8.5 million cars, though that will not start before January. Sales by 56% were given in the USA on VW vehicles.
Seat and Skoda sales – two other VW brands – were down 32.2 per cent and 3 per cent respectively.
Advertisement
The inclusion of Porsche vehicles among those alleged to contain defeat devices could trip up Mueller, who was drafted in from the luxury sports auto unit to replace Martin Winterkorn, who resigned at the height of the scandal.
