Seat also hit by diesel emissions scandal

The carmaker said 700,000 vehicles are fitted with a ‘cheat’ emissions software.


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By :  ,  Financial Analyst

Spanish carmaker Seat is now embroiled in the diesel emissions scandal after admitting that about 700,000 of its cars are fitted with a software able to cheat US tests. It has suspended the sale and delivery of all new vehicles that contain the software.

A spokesman said today (September 29th) that Seat is currently trying to work out how many affected cars were sold in each national market, adding that the company will contact owners so their cars can undergo tests.

It will also set up a search engine on its website to allow customers to find out if their vehicles are affected.

Volkswagen Group, Seat's parent company, says 11 million of its cars are affected, including five million Volkswagen-branded cars, 2.1 million Audis, 1.2 million Skodas and 1.8 million Vans.

VW share price tumbles

The German group share price has plummeted since the scandal emerged last week. It has lost 35 per cent of its market value since last Monday.

Martin Winterkorn resigned on Friday from his role as a chief executive of the group. In a statement, he said he was shocked by recent events, adding that although he did not believe he had done anything wrong, his departure was for the good of the company.

Volkswagen is the world's biggest carmaker, but it has admitted to deceiving US regulators during exhaust emissions tests. A device was installed in the vehicles that would give more favourable test results – allowing its diesel cars to produce up to 40 times more pollution than normally permitted. 

The company has set aside €6.5 billion (£4.7 billion) to cover associated costs.

In Brussels, European Union Industry Commissioner Elzbieta Bienkowska was scheduled to meet today with Volkswagen brand chief Herbert Diess.

"We expect Volkswagen to explain the situation," said EU spokesman Ricardo Cardoso. "The Commission wants facts and wants to get to the bottom of this."

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