On September 18 the EPA announced a determination that Volkswagen had installed in vehicles a “defeat device” that permitted diesel Jettas, Audis, and other models to “emit up to 40 times more pollution” than standards permitted. The devices turn emissions controls on during testing but turn them off during normal driving. Nearly a half-million vehicles reportedly contain this software. Volkswagen CEO Martin Winterkorn stated, “I personally am deeply sorry that we have broken the trust of our customers and the public.” He stated that an external investigation has been ordered by Volkswagen.
The announcement precipitated a sharp fall in Volkswagen stock prices
By Michael L. Roberts