Volkswagen Can’t Escape Its Collapsing Shares Issue

Evercore auto analyst Arndt Ellinghorst on Monday called the violation a “move more worthy of a back-street garage looking to get a used car through a mandated vehicle inspection.”

The software used to defeat emissions testing was detected after real-world examinations showed large discrepancies compared to emissions testing. It was determined that the vehicles spew out 40 times the allowed emissions set forth by EPA standards.

It’s unlikely that Volkswagen will be hit with an $18 billion fine, however the company has already lost nearly $20 billion in market valuation and a fine must still be given.

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Volkswagen for its part is working closely with the EPA to recall nearly 500,000 vehicles.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.

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