The New York Democrat also feels that Volkswagen, which is a German vehicle company should also be held responsible for full reimbursement of millions of tax credits it received from the government in a deceitful manner. S&P, the leading financial rating agency, told Bloomberg News that the automaker may see further cuts, up to two more notches. The rating agency has also downgraded company’s debt instruments as high financial risks are looming around the scandal-hit automaker. VW achieved its top financial rating 24 years ago when it his AA-.
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The revelations that as many as 11 million diesel vehicles have been fitted with software created to deceive emissions testers has damaged the German repuation of efficiency and reliability, said the report from Brand Finance.
Brand Finance disagrees. According to the report, the emissions scandal “has dealt a hammer blow not just to Volkswagen’s reputation but potentially to the entire German nation brand”.
“The downgrade reflects our assessment that VW has demonstrated material deficiencies in its management and governance and general risk management framework”, the analysts said.
“We believe VW’s internal controls have been shown to be inadequate in preventing or identifying alleged illegal behavior in the USA and misconduct in other regions”, S&P said.
South Korean law firm Barun Law LLC which is spearheading the domestic litigation against Volkswagen has said that on behalf of its plaintiffs, it will file a class action lawsuit with a federal district court in Los Angeles.
They then switch off the controls when the auto is on the road, allowing it to spew out harmful levels of emissions.
As many as 11m vehicles worldwide may have to be fixed to remove the so-called defeat device. The EPA has said VW could face $18 billion in fines.
Under pressure from labor leaders, the executive has agreed to resign from the remaining positions and completely sever ties with the company, according to a Reuters report citing German newspaper Sueddeutsche Zeitung and several television stations.
By withdrawing the applications for the 2016 models, VW is leaving thousands of diesel vehicles stranded at ports nationwide, giving dealers no new diesel-powered vehicles to sell.
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VW U.S. Chief Michael Horn apologized last week before Congress and agreed that the company has lost the trust of Americans.
