Volkswagen’s shares plummet on latest fuel usage revelation

Shares in carmaker Volkswagen have fallen by more than 8 per cent in trading this morning after it said it had understated fuel consumption of 800,000 cars sold in Europe.

Volkswagen’s share price was down 8.5 per cent this morning to €102.40, having declined by 40 per cent since the start of the year.

The VW scandal deepened on Tuesday after it admitted it had problems involving carbon dioxide emissions on 800,000 cars - including some with petrol engines.

While the Volkswagen Group can’t confirm which models are affected - or whether any Irish vehicles are involved - the latest news raises serious concerns for Irish owners as the motor tax regime here is based on CO2 emissions.

The problems are a different issue from the scandal VW has been facing since September over the excess Nitrogen Oxide emissions from up to 11 million vehicles worldwide fitted with software designed to cheat at emissions tests.

Carbon Dioxide emissions depend on a vehicle’s fuel consumption, not its emissions-control systems.

The company said it had discovered the latest issue during “comprehensive investigations” it had promised following the emergence of the NOx cheating scandal.

The statement gave no information about the brands affected or whether they involved diesel or petrol engines.

“During the course of internal investigations, unexplained inconsistencies were found when determining Type Approval CO2 levels,” a company statement said. “Based on present knowledge around 800,000 vehicles from the Volkswagen Group are affected

VW’s share price has largely been in freefall since it was revealed in mid-September that software had been fitted to cars that allowed it to cheat emissions tests.

On September17th, the day before the revelation, shares traded at €167.80. They reached a low of €92.36 in early October before rallying somewhat. However, the latest revelation has sent stock down again to €102.40 in mid-morning trading.

Porsche meanwhile was down 9.5 per cent in trading today after it warned that VW's latest findings could weigh on its results.