VW suspends sales of diesel models in the US

The EPA said it had found no other automaker with similar devices in its testing, but declined to say how many other vehicles it has examined.

The move pulls Porsche and Audi deeper into the scandal that has already engulfed the corporate parent Volkswagen AG and its mass-market VW brand, shaving almost 20 billion euros ($22 billion) off its market capitalization.

The carmaker said it would immediately start talking to “responsible authorities” about what to do about the latest findings.

The latest revelations add a new dimension to a crisis that previously focused on the carmaker’s attempts to cheat on smog-causing nitrogen oxide emissions by installing deceptive software in 11 million diesel vehicles worldwide. The EPA tested these vehicles and found that they pollute up to nine times more than what is allowed.

The cars were sold under the Volkswagen, Audi, SEAT and Skoda brands, majority in Europe and none in the United States.

Sales of foreign diesel vehicles, which have been quite popular in Korea, rose only 0.5 percent on-year in October, indicating that the ongoing scandal has been affecting the overall market.

Analysts say the total cost is likely to run into tens of billions of euros once fines, penalties and compensation are included.

“We have launched a preliminary investigation, but have not yet decided whether to launch a formal inquiry”, a spokeswoman for the public prosecutors in Brunswick, north Germany, told AFP. “We need all the facts on the table”.

Transport minister Alexander Dobrindt said the government wanted to force the company to pay the extra auto taxes which would be incurred by the higher Carbon dioxide emissions levels.

VW is Europe’s biggest motor manufacturer, employing more than 750,000 people in Germany, and has been a symbol of the nation’s engineering prowess.

The EPA actions contributed to a credit-rating downgrade of VW’s debt by Moody’s Investors Service.

“VW is leaving us all speechless”, said Arndt Ellinghorst of banking advisory firm Evercore ISI after the disclosure about the smaller engines.

In an emailed statement, Bernd Osterloh said the company broke rules requiring it to consult with the works council before taking any such step.

The problem also concerns vehicles between 2013-2015.

Mueller has said that upper management would not have involved itself in software development and has pointed to “a few” employees who altered the software code.