VW shares drop 18 per cent following emissions scandal

Volkswagen’s shares lost 18 per cent of their value yesterday, following the “defeat device” scandal in the US and an apology from the company’s CEO.

The German car maker, which was the global leader by units sold in the year’s first half, has admitted cheating US Environmental Protection Authority checks of 2009-2015 “clean diesel” vehicles. It reportedly rigged tests using a “defeat device”, which engages pollution controls only during tests.

The BBC reports that fines in the US could be $US 37,500 per vehicle for the 482,000 vehicles sold, totalling $US 18 billion.

The car company ordered a recall of half a million vehicles on Friday.

“I personally am deeply sorry that we have broken the trust of our customers and the public,” said the company’s CEO, Martin Winterkorn, in a statement.

The ABC reports that South Korean authorities have said they will be conducting emissions tests of VW vehicles.

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