German automaker Volkswagen has entered into rough waters lately with the revelation of emission fraud that has affected approximately 11 Million vehicles. Things have reportedly gone from bad to worst for the globally popular automaker who has been using 'defeat device' to tackle emission norms.
The company has reportedly set aside a sum of 6.5 billion Euros (Approx Rs 47,844 crore) for legal provisions. Volkswagen has also lost about 23 Billion Euros in its market value owing to about 35% drop in share prices in just two days since the revelation was made. Dr. Martin Winterkorn, VAG CEO, has reportedly publicly apologised for the fraud and has assured that the company shall conduct an in-dept probe into the matter.
As per Bloomberg, Germany, Italy, South Korea and France has ordered scrutiny of Volkswagen cars. Whereas other countries including India are also likley to initiate a probe in this matter. The matter came to limelight when tests were conducted on 2.0-litre, four-cylinder diesel cars.
During the recent launch event for 2016 facelift US-spec Passat, Michael Horn, president and CEO of Volkswagen Group of America, said, “Our company was dishonest, with the EPA and with the California Air Resources Board, and with all of you. And in my German words, we have totally screwed up. We must fix those cars…and we have to make things right with the government, the public, our customers, our employees and our dealers. This kind of behaviour is completely inconsistent with our core values.”
