The share price of Volkswagen fell by close to 20% for the second successive day as the German car market continues to reel from the US diesel emissions scandal and has confirmed that up to 11m of its vehicles worldwide had been fitted with the software used to deceive emissions testers.
EU regulators say they are in contact with Volkswagen and the US authorities as the ramifications continue to widen, while the French and German governments have also announced separate enquiries. VW has set aside €6.5bn to deal with the crisis.
Volkswagen vehicles are among the best-selling in Ireland - accounting for about one in every five vehicles sold here.
Widely reported rumours suggesting that VW chief executive, Martin Winterkorn had resigned yesterday proved to be unfounded.
The advisory board of the company meets today ahead of a wider board meeting on Friday, which is due to discuss his contract.
The embattled car firm admits software used to rig exhaust tests may have been in some 11 million vehicles worldwide and now faces a criminal investigation in the US and further probes in countries including Germany, France and South Korea.
New York Attorney General Eric Schneiderman confirmed he had opened an investigation, adding: "No company should be allowed to evade our environmental laws or promise consumers a fake bill of goods."
US authorities say the firm deliberately circumvented clean air rules on diesel cars through the use of software which was triggered when cars were undergoing exhaust tests.
The so-called "defeat devices" meant that true emission levels, as much as 40 times the level legally allowed in the US, were hidden.
Chief executive Martin Winterkorn has apologised but has given no undertaking to resign.
"I am endlessly sorry that we have disappointed this trust. I apologise in every way to our customers, to authorities and the whole public for the wrongdoing," he said in a video message.
"We are asking, I am asking for your trust on our way forward," he said. "We will clear this up."
Additional reporting by IRN
