In the wake of Volkswagen being ordered by the federal government to recall a half million vehicles due to an illegal software that enables the cars to pass emission tests unlawfully, the prominent automaker lost a stunning 17.1 percent of its value Monday, closing at just 134.5 euros per share. The massive decline has been the worst the company has experienced since 2008, according to MSN Money.
Meanwhile, the Obama administration has stated that it will initiate a thorough investigation of what is now being termed as "defeat devices" in diesel vehicles, a software programmed to automatically switch a vehicle's engines to a cleaner mode when being tested for emissions.
During regular driving, the software switches off the mechanism, enabling Volkswagen vehicles to drive more powerfully on the road while emitting about 40 times the legal pollution limit, reports Fox News.
Volkswagen Chief Executive Officer Martin Winterkorn said on Sunday that the company is cooperating in the ongoing investigation, apologizing and acknowledging that the company has "broken the trust of our customers and the public."
The scandal has already erased more than 13 billion euros (about USD 15 billion) from the company's market share. Apart from this, the company may face up to about USD 18 billion in fines, as well as criminal prosecution for the people involved.
