‘Green’ Cars Meltdown As VW Emissions Scandal Rocks Car Industry

The European car industry was shaken on Monday as Volkswagen’s share price fell almost 20 per cent over its admission that it cheated on US emissions tests, triggering calls for a broader inquiry into the sector. More than €13bn was wiped off VW’s market capitalisation, spurring a wider fall in carmakers’ shares, after Martin Winterkorn, the group’s chief executive, apologised and ordered an external investigation into the affair. he news prompted a fall in carmakers’ shares with Daimler, BMW, Renault and PSA Peugeot Citroën each being sold off amid investor concerns over the potential scale of the cost to VW and the broader industry. VW faces billions of dollars in fines and warranty costs, possible criminal charges for executives and class-action lawsuits from US drivers. --Andy Sharman and Jeevan Vasagar, Financial Times, 22 September 2015