Volkswagen (VOWG) stocks fell more than 20% on Monday morning setting the record for the biggest one-day fall in a stock’s price in history. The automaker is accused of rigging U.S. emissions tests. Germany is conducting its own probe into the company claiming that VW may have falsified data in the U.S. and Europe.
The U.S. Environmental Protection Agency states that the company used software for its diesel models, under both VW and Audi brands, to deceive regulators. The software interfered with toxic emissions tests resulting in false data being produced. The company is facing penalties up to $18 billion as a result.
Germany’s Economic Minister states that Volkswagen must clear all allegations, and expressed concerns that the company’s actions may harm the auto industry in the country. Germany has an excellent reputation as an automaker, and the auto industry is a thriving sector in the country’s economy.
Volkswagen’s CEO, Martin Winterkorn, will meet with the transport minister on Monday to discuss the matter.
Analysts state that Winterkorn may have to resign following the scandal. It is still unknown if other automakers in the country have followed similar deceptive practices.
Daimler and BMW, both German automakers, state that the accusations made do not apply to their respective brands.