Speculations of huge fine against Volkswagen have been circulating the automotive industry for days, after Michael Horn confessed dishonesty on emission regulations.
President and CEO of Volkswagen Group of America, Michael Horn, straightforwardly revealed that the second largest automotive manufacturer in the world Volkswagen disobeyed emission standards, NY Times reported. Currently, rumors are spreading that Volkswagen may be facing several lawsuits and could fine up to $18B because of forging emission records. After Horn's affirmation of the dishonesty, during an event held in Brooklyn last Monday, Volkswagen shares chop down by five percent the day after the confession. Consumers and investors could or perhaps already planning to file charges against Volkswagen because of this controversy, according to The Guardian.
The Volkswagen controversy has shaken the automotive world, leading the France finance head ordering a "Europe-wide" recall in all diesel cars to restore the confidence of the public. In an interview with one of the radio stations in France, Michael Sapin said that the issue isn't just about the speed or quality of materials used, it is about the safety of the people.
Automotives that were manufactured in 2014 and 2015, such VW Jetta and Gold as well as Audi A3, would undergo recall according to South Korea's statement last Tuesday. South Korea also stated that their investigation could run to all diesel automotives, especially German produced.
German automotive manufacturers' reputation and credibility is at stake with this kind of issue that Volkswagen is currently facing. The faith that German automaker had engraved over the years to their United States consumers may be in jeopardy. All these speculations have reached the knowledge of the Environmental Protection Agency, and is said that they will release a directive to retract almost 500,000 Volkswagen units sold in the United States. The organization will focus on the models with software used primarily to pass the standards of the emission testing.
Volkswagen is given ample time to present their solution to this issue before recall is ordered.