The following is an excerpt from WILLIAM BOSTON | November 4, 2015 | WSJ.com |
Shares in Volkswagen AG plunged on Wednesday after the German car maker said its emissions-testing scandal had widened beyond what was previously disclosed, now encompassing a broader set of infractions that could affect about 800,000 more cars and cost it at least an extra $2 billion.
On the Frankfurt Stock Exchange, Volkswagen shares were down 8.4% just after the market opened and repeatedly dipped to a 9% drop within 25 minutes of trading. Shares of Porsche Automobil Holding SE, a controlling shareholder of Volkswagen, were also more than 8% lower. At 0825 GMT, Volkswagen shares traded down 8.8% at €101.25. Porsche SE shares were down 8.5% at €39.87.
The company said on Tuesday that it understated the level of carbon-dioxide emissions of the additional cars when providing information to regulators. Some of these cars were gasoline-powered, Volkswagen said, moving the violations beyond the company’s diesel fleet for the first time.
Volkswagen disclosed the error after conducting its own emissions tests. The report is a fresh blow after VW’s admission in September that up to 11 million diesel-powered vehicles world-wide could have so-called defeat devices that lowered tailpipe emissions of nitrogen oxides during laboratory testing.
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