VW to replace CEO amid emissions scandal: Tagesspiegel

However, during normal driving the cars give off between 10 and 40 times the legal pollution limit, according to the EPA.

Volkswagen said discrepancies related to type EA 189 engines.

“A noticeable deviation between bench test results and actual road use was established exclusively for this type of engine”.

“Volkswagen is working intensely to eliminate these deviations through technical measures”, the company said.

It set aside 6.5 billion euros ($7.3 billion) to cover the cost of recalls and “efforts to win back the trust of our customers”, trashing its profit forecast for the year in the process.

In calling on national governments to be “particularly vigilant… on national manufacturers”, a statement from the European Commission appeared to echo longstanding criticism from environmental campaigners of Germany’s enforcement of standards on makers of big cars and trucks that drive its export economy.

“Strong emissions standards are in place for the benefit of public health”. However, some experts believe that Volkswagen’s emissions rigging is an isolated incident.

South Korea also said on Tuesday that it will also investigate VW cars.

The scandal has prompted questions about Mr Winterkorn’s future.

Michael Horn admitted at an event in Brooklyn, New York, on Monday night that VW had been “dishonest” with regulators and the public.

In a Monday announcement, the US House Energy and Commerce Committee said that it has chose to hold a hearing into German automaker Volkswagen AG’s allegedly deliberate violation of the Clean Air Act since 2009.

Park Pan-kyu, a deputy director at South Korea’s environment ministry, said that four models – Golf, Jetta, Beetle and Audi A3 – are subject to the probe, which is expected to end in November.

In addition to paying for the recall, VW faces fines that could add up to billions of dollars. Order books for at least five models, including the VW Golf and Passat, are to be closed, as they feature complex algorithms that enable them to considerably reduce emissions during laboratory and station tests. It said it was in contact with European authorities and others worldwide.

However, according to the Transport & Environment group, “there is strong evidence that similar illegal devices are also used in Europe by both VW and other manufacturers”.

The share prices of the company continue to slump on Tuesday, losing 20 percent during the trading. Daimler, the maker of Mercedes-Benz, was down 4.6% on Tuesday, while BMW lost 5.2%. It is neck-and-neck with reigning sales leader Toyota and overtook the Japanese carmaker during the first half of this year.

“Regulators will look at this more closely now”, Bailey said.

“Volkswagen was deceptive in the manufacturing and the marketing of the vehicles”, he alleged.