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."
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.