The German carmaker is facing up to $ 18 billion in fine in the US over allegations of cheating pollution tests. The probe came after the company recalled a whopping 11 million units sold since 2006.
The company admitted that many of its diesel cars were fitted with software that can cheat pollution tests. Following the exposure, Volkswagen Chief Executive Martin Winterkorn stepped down.
Volkswagen in turmoil
Discrepancies were found between VW's test results and real world performance in European diesel engines by the ICCT. U.S. Environment Protection Agency (EPA) investigated into Volkswagen and found that they illegally installed an engine control unit (ECU) software.
VW has yet to explain who installed the software, under what direction, and why. The CEO of Volkswagen, Martin Winterkorn has promised full cooperation with the government following the company's admission that it rigged nearly 11 million cars to defeat U.S. smog tests.
Many Germans worry that this will have a domino effect on their businesses, eroding the cherished 'Made in Germany' label.