Well, look at this:
http://www.wsj.com/articles/volkswagens-shares-take-tumble-after-epas-fresh-allegations-1446559388 (from the Wall Street Journal)
Volkswagen Understated Carbon Dioxide Emissions
Auto maker’s gasoline-fueled cars drawn into emissions scandal for first time
By WILLIAM BOSTON
Updated Nov. 3, 2015 3:10 p.m. ET
Volkswagen AG said it understated the level of carbon dioxide emissions in its past certifications for about 800,000 cars, a revelation that brings its gasoline-powered vehicles into its diesel-emissions scandal for the first time.
Europe’s largest auto maker estimated the financial risk to the company from the new admission was about €2 billion ($2.19 billion,) but didn’t explain how it reached that figure. Last week, the company recorded a charge to earnings of €6.7 billion.
The company disclosed the error on Tuesday after conducting its own emissions tests. The report that some Volkswagen vehicles exceed CO2 levels is a fresh blow after its admission in September that 11 million diesel-powered vehicles world-wide could have been affected by so-called defeat devices that artificially lowered tailpipe emissions of nitrogen oxides during emissions testing.
The auto maker provided few details in a statement Tuesday, but said that documentation of around 800,000 vehicles provided CO2 levels that were too low.
Volkswagen initiated an internal investigation after admitting some diesel-powered cars with model years between 2009 and 2014 used software that could lowered nitrogen oxide emissions during testing conditions. U.S. and European authorities have opened up their own regulatory and criminal probes.
The Wolfsburg, Germany-based auto maker said it was in contact with regulatory agencies to determine steps needed to clarify the situation and to establish accurate values for the CO2 emissions of the affected vehicles.
“From the very beginning I set out to ensure that we mercilessly and completely clear up this situation,” said Volkswagen Chief Executive Matthias Müller in a statement, “This is a painful process but there is no alternative.”
The company’s supervisory board released its own statement, saying it is “deeply concerned” about the latest revelations that the company’s emissions-cheating scandal is widening further and pledged to meet soon to discuss taking action.
Volkswagen disclosed the new test results after European markets closed. Earlier in the day, Volkswagen shares fell as much as 5% on the
Frankfurt Stock Exchange before retracing some of the loss. That decline followed fresh allegations of emissions cheating by U.S. environmental authorities on Monday.
Monday’s allegations by the U.S. Environmental Protection Agency hit Porsche, Volkswagen’s sports-car brand and big profit center, for the first time. Mr. Müller previously ran Porsche, and the latest news raised questions of what he might have known about engines at Volkswagen’s top-flight brands.
The EPA said it found so-called defeat devices on 3.0 liter diesel engines used in larger Volkswagen sport-utility vehicles such as its Touraeg, Porsche’s Cayenne, Audi’s Q5 and Q7, and Audi A6 and A8 sedans. The regulator said the vehicles it tested had increased nitrogen-oxide emissions up to nine times the allowable standard.
Volkswagen shares, which have slumped badly amid the emissions scandal, fell early Tuesday, but finished off less than 2% at €109.35 ($119.69) in 4 p.m. trading in Frankfurt.
Volkswagen dismissed the EPA’s latest allegations, saying it didn’t install any emissions-cheating software on the engines used in these vehicles.
A spokesman said any discussion about consequences from the EPA allegations is irrelevant because in this case the company did nothing wrong.
What rattled investors when European stock markets opened on Tuesday was concern that the new allegations could threaten Mr. Müller just over a month after he took charge in the wake of Volkswagen’s admission that it had cheated on emissions tests by using a so-called defeat device on up to 11 million small and midsize diesel-powered cars.
That admission led to the resignation of Martin Winterkorn, the former CEO, and catapulted Mr. Müller from head of Porsche AG to chief of Volkswagen. Now, analysts are asking whether an insider like Mr. Müller is the right person to lead Volkswagen out of the worst crisis in the company’s 78-year history.
“The allegations are all the more serious given that VW’s new CEO Matthias Müller came from Porsche and any hint of further deception could well see his position come under scrutiny,” said Michael Hewson, chief market analyst at CMC Markets, a brokerage.
Mr. Müller became Porsche chief in 2010. An insider, he was a protégé of his predecessor and liked by the Porsche-Piëch clan that controls Volkswagen’s voting stock. He oversaw Volkswagen group product planning from 2007 to 2010.
“I was astonished that Porsche’s Matthias Müller was appointed CEO of VW,” said David Buik, a market commentator at Panmure Gordon. “There was always a chance that Porsche and Audi would be directly or indirectly involved in the diesel saga.”
Volkswagen’s diesel woes have kept investors on edge, but seem to have little impact on German consumers. Germany’s motor vehicle agency reported Tuesday that registrations of new diesel-powered cars rose 6% in October.
“Diesel is a key technology for us,” said Harald Krüger,
BMW AG chief executive, during an earnings call with analysts on Tuesday. “At the moment, we are seeing no impact on sales from the diesel issue, but I must add that it is still early days.”
—Natascha Divac contributed to this article.
DRIP, DRIP, DRIP