More than $17 billion has been erased Monday from Volkswagen’s value in shareholders’ eyes as the company awaits more fallout from news that the company cheated through emissions tests.
Volkswagen’s stock dropped more than 20 percent Monday after the German automaker announced it would stop sales of its diesel cars on Sunday. New CEO Martin Winterkorn issued a statement Sunday to apologize:
I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter.
According to Reuters, Germany said it would investigate the claims on its own.
“You will understand that we are worried that the justifiably excellent reputation of the German car industry and in particular that of Volkswagen suffers,” Germany’s Economy Minister Sigmar Gabriel told the company, according to Reuters.
German Transport Minister Alexander Dobrindt spoke with Winterkorn on Monday to see if the coverup extended to cars sold in Europe.
The automaker faces record fines of up to $18 billion from the U.S. government for its role in cheating through emission tests, and immeasurable damage to its reputation as a sustainable automaker.
Separately, VW said it would suspend development of its 10-speed DSG automatic transmission — slated for many of its diesel vehicles— due to rising costs. The gearbox was rumored to be included in the next-generation Passat.