Volkswagen will have more inspections after the scandal in the US

22.09.2015

The scandal around Volkswagen, which has already recognized the fact of fraud while passing tests for emissions of diesel engines in the United States, started on Tuesday, when South Korea said it will hold its own investigation and the French minister has called for a similar inspection in the EU.

Shares of the German automaker fell to a new three-year low after a 19 % crash on Monday, when the company recognized that it used software that gave US regulators incorrect information about the amount of harmful emissions.

The largest European automaker faces a fine of up to US $ 18 billion, as well as class actions on the part of buyers and a blow to the reputation. US regulators suspect that VW misinformed them more than a year.

On Tuesday, amid the scandal in the US, French Finance Minister, Michel Sapin, said that the EU should conduct its own investigation.

"This should be done at the European level. We are the European market with European rules. They should be followed. And they have been violated in the United States," - said Sapin to the radio station Europe 1, proposing to extend the investigation also for French companies.

Meanwhile, the deputy head of the Ministry of Environment of South Korea reported that there will be tested in the country three models of VW and Audi with diesel engines, about 4.000-5.000 vehicles. The audit will be a decision about their recall.

On Wednesday the committee of the Supervisory Board of Volkswagen should discuss the current crisis. The full Council is to meet on Friday to extend the contract with CEO Martin Winterkorn before the end of 2018.

"I am sure that eventually there will be consequences for the personnel, there is no doubt," - said the member of the Supervisory Board, Olaf Lies, to the radio station Deutschlandfunk on Tuesday.

Some analysts believe that Winterkorn, who recently experienced a conflict with the now former chairman of the supervisory board, Ferdinand Piech, has to leave.

Volkswagen will cut its profit forecast for the current year, due to the fact that it should direct in the third quarter about 6.5 billion euro to cover possible expenses in connection with the scandal in the United States and other countries, the company said on Tuesday.

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