The Volkswagen scandal widened early this week as the company announced that 11 million vehicles were affected by the scheme, which faked pollution controls. The scandal will cost the company$7.3 billion, or 6.5 billion euros.
The company dropped as much as 30.85 euros per share. In two days, VW has nosedived as much as 38%. That equates to about 25 billion euros in market value.
On news of the scandal, the German Transport Ministry has decided to initiate an investigation. VW’s executive committee of the supervisory board will also meet on Wednesday to address the issue.
Regulators all over the world will be looking into the matter, and VW may be facing numerous fines as a result. Experts say that changes need to be made at the head of the company.
Martin Winterkorn, CEO of VW, has been scrutinized since the revealing of the scandal by the U.S. EPA on Friday. Winterkorn released an apology on Sunday and promised a thorough investigation of the matter. However, he did not comment on his role in the debacle. Winterkorn will need to explain himself to the supervisory board, who is set to vote on his contract extension this week.
Regulators in Italy, Germany, South Korea and France stated that they will scrutinize VW vehicles.
VW shares droppedto 101.35 euros, or23%, on Tuesday.