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Volkswagen’s exhaust manipulation scandal- Investors draws shares,
price fell by 20% in US.
VW CEO Martin Winterkorn is in distress and fear loss of
image and loss of recall cost after it failed pollution test run by US
Environmental Authorities and guilty of manipulating software which screened
less nitrogen oxide emission. After the news of manipulated exhausts by VW many
investors drawn their shares and subsequently the share price fell down over
20%.This is the biggest ever price down
in last 21 years which made a loss of around 17 billion Euros in market
capitalization.
The German Environmental Aid (DUH) termed it as offence and
calls for Winterkorn’s resignation. As per the US authorities BMW Diesel model
has also been tested and found no violations. The German Federal Economics
Minister Sigmar Gabriel strongly criticised exhaust manipulation of Volkswagen
in the United States.Switzerland is also concerned over manipulations bu VW
where it is being imported via AMAG.For the time being VW USA has stopped the
sale of 4-cylinder diesel cars.
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