Volkswagen said irregularities on diesel-emission readings extend to 11 million vehicles around the world, forcing the German carmaker to set aside €6.5 billion in an initial tally of the potential costs.
Volkswagen extended its slide after the announcement, with shares falling as much as €30.85 and bringing the drop in two days to 37 per cent. That has wiped out €24 billion in market value, as the inquiry into rigged air-pollution counter-measures widens.
The scandal engulfing Volkswagen, which has admitted cheating diesel vehicle emissions tests in the US, spread east on Tuesday as South Korea said it would investigate three of the maker’s diesel Model.
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The company has denied reports that its chief executive Martin Winterkorn was to be replaced in the wake of the scandal, describing it as “nonsense”.
Some analysts suggest the chief executive, who recently saw off a challenge to his leadership with the ousting of long-time chairman Ferdinand Piech, will have to go.
The board is due to meet on Friday to extend Mr Winterkorn’s contract until the end of 2018
