Britain calls for EU Commission to investigate emissions tests

The US Environmental Protection Agency (EPA) said on Friday Europe’s biggest carmaker used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion. “I personally am deeply sorry that we have broken the trust of our customers and the public”, he said.

Volkswagen said Sunday that it had launched an investigation.

VW shares in Europe fell nearly 20 percent on Monday, and the company suspended USA sales of its diesel cars until it can come up with a fix to satisfy regulators.

Its findings cover 482,000 cars built in the last seven years including the Audi A3, VW Jetta, Beetle, Golf and Passat models.

On the open road, the vehicles were spewing up to 40 times the permitted amount of nitrogen oxide, according to the EPA. Environment Canada also said it collaborates on emissions verification activities with the U.S. EPA “to ensure our common environmental outcomes are achieved”, and pointed out that its emissions standards are aligned with USA standards.

The company said it was “working intensely to eliminate these deviations through technical measures” with German and other authorities.

The carmaker also announced it was setting aside 6.5 billion euros ($7.2 billion) in provisions in the third quarter to cover potential costs resulting from the scandal, adding that this would lead to an adjustment of its 2015 profit targets.

French Finance Minister Michel Sapin on Tuesday requested a Europe-wide probe, telling French radio that it seemed necessary to check cars manufactured by other European carmakers in order to reassure the public.

VW did not provide a breakdown of the number of vehicles which may be affected in each country but its statement followed suggestions that United Kingdom diesel owners could see their vehicles recalled.

Shares in Volkswagen plunged further on Tuesday as the German auto giant faced fast-spreading worldwide investigations and a potentially huge financial hit from the snowballing scandal about cheating USA pollution tests.

Meanwhile, Australia’s Department of Infrastructure and Regional Development said it was “seeking urgent clarification from Volkswagen Group Australia as to whether vehicles supplied to the Australian market use similar software to that used in the U.S”.

Tuesday, Volkswagen also said it “does not tolerate any kind of violation of laws whatsoever” and reiterated its goal of winning back its customers’ trust.