On Tuesday, Volkswagen revealed that 11 million diesel cars worldwide have been equipped with software allegedly used to cheat emissions tests.
The scandal was revealed on Friday when the Environmental Protection Agency ordered Volkswagen to recall 500,000 vehicles sold in the US, including diesel Jettas, Golfs, Beetles, and Passats, as well as some diesel Audi vehicles, for including a so-called defeat device in their cars. The defeat device would sense when a car was undergoing emissions testing and allow the car's emissions control to work properly. However, when the car was operating under normal driving conditions, emissions control systems would not work properly, spewing 10 to 40 times more nitrogen oxide (NOx) into the air than is allowed by EPA regulations.
In the wake of the news, Volkswagen Group's stock has tumbled, with shares losing more than a third of their value on Germany's stock exchange.