This past Sunday, the U.S. Environmental Protection Agency issued a statement declaring that the Volkswagon Auto Group had cheated on their fuel emissions tests for years. The EPA stated that multiple models of VW cars were programmed to release fewer fuel emissions when they were undergoing EPA mandated testing. When the cars were on the road, however, they were releasing nearly 40 times more then the federal limit. The discrepancies that appeared amid testing were rationalized as technical glitches for years.
The EPA has forced the Auto Group to issue a public apology and to stop selling diesel versions of the Jetta, Golf, Beetle, Passat, and Audi A3 models. Since the report was issued, Volkswagon has lost 23% of its market value, equally about $17.6 billion. Stock prices have plummeted to their lowest levels in more than three years.
Original Source: Bloomburg Business, by Naomi Kresge and Richard Weiss.
Picture: Volkwagon TDI Passat, caricos.com