Volkswagen CEO: ‘We screwed up’ cheating emissions tests

German automaker Volkswagen AG admits that it rigged its diesel-powered cars so that during USA emissions tests, they would appear to emit fewer nitrogen oxides, which can contribute to ozone buildup and respiratory illness.

But VW’s revelation Tuesday that 11 million diesel cars worldwide are equipped with the device led to a 20-percent fall in its share price on the Frankfurt market. The software installed by Volkswagen in its cars has violated the Clean Air Act, the US Environmental Protection Agency said in a statement on Friday.

“And in my German words, we have totally screwed up”, said Horn.

To cover the necessary service measures and what Volkswagen says are “other efforts to win back the trust” of customers, the company said it is setting aside some 6.5 billion euros in the current quarter.

The German company’s boss, Martin Winterkorn, is under increasing pressure ahead of emergency talks.

Volkswagen blamed unrelated issues for more than a year while the EPA and California regulators asked why its cars were running much dirtier on the road. Experts think VW may have wanted to avoid the cost of additional hardware to meet tough USA emissions standards, so it came up with a cheaper software fix.

But Mr Winterkorn has reportedly lost the confidence of shareholders after stocks fell a further 20% on Tuesday.

It added: “Due to the ongoing investigations, the amounts estimated may be subject to revaluation”.

Schneiderman said his office “will seek to uphold New York’s strong tradition of consumer and environmental protections as this investigation proceeds”.

The carmaker later said 11 million cars globally had devices that could cheat pollution tests. “I don’t know how I’m supposed to trust a company that went out of their way to lie”, Levin said.

“The maximum fine which a large corporation would face for conviction on indictment is $6 million for each offence”, according to Environment Canada’s statement.

“The Department is seeking urgent clarification from Volkswagen Group Australia, as to whether vehicles supplied to the Australian market use similar software to that used in the United States “, the DOI said in an email.

The shockwaves were felt across the sector as traders wondered who else may get embroiled.

VW recently overtook Toyota to become the world’s top-selling auto makers.

“I hope that the facts will be put on the table as quickly as possible”, German Chancellor Angela Merkel said in Berlin. Thanks to our friends over at the Economic Times who corroborated on the rumors earlier today (Sept. 22, 2015) it does indeed look like Volkswagen is in the middle of actively looking for a replacement, with rumors that Matthias Müeller will be stepping in.

Other countries, such as South Korea, have also ordered investigations into emission levels of VW cars and some law firms in North America have filed class action lawsuits.