A look at the Volkswagen emissions scandal

Volkswagen and its Audi unit froze sales of diesel vehicle models in the United States today after new accusations on the use of software that cheats on emissions tests. The German automaker recently revealed that its own emissions testing found 800,000 gasoline-powered vehicles with certifications that understated the carbon dioxide emission levels, according to a second Wall Street Journal story.

“The majority of the vehicles concerned have diesel engines”, it said, leaving open the inference that a few petrol engines had been caught up for the first time in the developing emissions scandal.

Shares in Volkswagen took a renewed battering on Wednesday as evidence emerged that the massive pollution cheating scandal engulfing the company could be even wider than initially thought. The software reduced emissions when the auto was on a test stand.

The 2013-2016 Volkswagen Touareg also contains the 3.0-liter diesel engine. The previous revelations of cheating involved four-cylinder diesels in smaller cars.

The credit downgrade “reflects mounting risks to Volkswagen’s reputation and future earnings”, Moody’s said, pointing out that the downgrade reflects several new revelations about the extent of the company’s violations. On November 4 it also recalled nearly 92,000 recent models, saying they had been equipped with faulty camshaft lobes that can break, reducing braking effectiveness as well as engine power, which could increase the danger of a crash. Amid concerns over the escalating costs, the German carmaker’s ordinary shares slid 9.5 percent to close at 100.45 euros.

The carmaker said late Tuesday it had also found “unexplained inconsistencies” in emissions from of its vehicles of carbon dioxide, a gas that contributes to global warming. The company said late Tuesday that the new finding could add at least 2 billion euros ($2.2 billion) to the 6.7 billion euros already set aside for repairs.

VW, Skoda, Audi and Seat vehicles could be affected and the company estimates the Carbon dioxide problem could cost it about €2bn (£1.4bn).

“We all have an interest that everything at VW is turned over and reviewed”, Mr Dobrindt said, adding that the government wanted to force the company to pay the additional vehicle taxes to be incurred by the higher CO² emissions levels.

The Volkswagen faces heavy recall and penalty costs worldwide in the biggest crises of the vehicle manufacturing giants history.