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    As the Diesel Emits: German Regulators Deem Volkswagen Emission Software As A Defeat Device


    • If you thought the Volkswagen scandal couldn't get any worse, think again.

    Volkswagen's diesel emission scandal went deeper this week as the German Federal Motor Transport Authority (known as the KBA) announced on Tuesday that the software Volkswagen uses on their diesel vehicles was deemed illegal. This decision opens up the possibility of lawsuits and penalties against the company, but the extent of this is unknown at this time.

     

    As the New York Times states 'it was a turbulent day for the company.' Aside from the KBA announcing the software Volkswagen used was deemed illegal, the company announced monthly sales in the U.S. dropped 25 percent. Volkswagen also announced that 50 employees have stepped forward and provided information about the software and who knew what as part of an amnesty program that ended in November.

     

    Then came Standard & Poor's announcement that it had downgraded Volkswagen's debt from A- to a BBB+, three notches away from junk status. The rating agency said the downgrade “reflects our view that VW’s manipulation of engine emissions exposes the group to material, wide-ranging adverse credit impacts.”

     

    Source: New York Times

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