Tuesday, September 22, 2015

Volkswagen "totally screwed up" - Value Down EUR 20 Billion (so far)

BBC (Sep 22, 2015) - Volkswagen shares plunged nearly 20% on Monday and another -19% on Tuesday (so far) after the US Environmental Protection Agency (EPA) found that software in several diesel cars could deceive regulators. Michael Horn, the boss of Volkswagen's US business, has admitted the firm was dishonest in using software to rig emissions tests. He said the firm was dishonest with US regulators, adding: "We have totally screwed up." Last Friday, the regulators said VW diesel cars had much higher emissions than tests had suggested. Volkswagen was ordered to recall half a million cars in the US on Friday. Up to 11 million cars worldwide might be affected by the diesel deception. In addition to paying for the recall, VW faces fines that could add up to billions of dollars. Volkswagen could be fined $25 billion for US emissions scam. There may also be criminal charges for VW executives.