Volkswagen Emissions Scandal May Cost European Car Manufacturer Over $7 Billion

The Volkswagen emissions scandal could create a major setback in business for the European manufacturer. It was reported that 11 million vehicles were equipped with diesel engines as well as emissions cheating devices.

A report by Reuters claims that as of Tuesday, European authorities have gotten in touch with those of the United States in an attempt to rectify what is being called a failure in inspection services. It seems the cars in question were giving off too much of a carbon emission, and it’s a problem that affects every nation the cars were shipped to.

As previously reported by the Inquisitr, vehicle emissions may have been part of the reason why July 2015 was officially named the hottest month in recorded history. El Nino was also blamed, but scientists disproved the storm pattern for such a rapid effect on global warming.

European Commission spokeswoman Lucia Caudet stated that even though the Volkswagen emissions scandal doesn’t warrant immediate surveillance measures in Europe, the problem is still under serious investigation.

“We need to get to the bottom of this. For the sake of our consumers and the environment, we need certainty that industry scrupulously respects emissions limits.

“National authorities responsible for vehicle type approval and enforcement of emissions testing need to be particularly vigilant and rigorous in executing the obligations imposed on national manufacturers.”

The European Commission was first made aware of the problem when laboratory tests and those of vehicles already on the road in the U.K. showed a serious difference in NOX (Nitrous Oxide) levels in diesel fueled cars. NOX is also said to be responsible for lung disease. Fines related to the allegedly cheated emissions could set Volkswagen back over $7 billion.

The discovery has caused a major drop in VW stocks, with over a third of investors abandoning the company over its allegedly faked emissions controls. The executive committee will meet on Wednesday to discuss a solution to bring investors back after the Volkswagen emissions scandal, according to Bloomberg.

Vincenzo Longo, a strategist for IG Group in Milan, says the problem is definitely global and could require a change in command for the company.

“It’s not just a U.S. matter for VW – you have regulators all over the globe looking into it with potentially numerous fines to come. We don’t see any stop to this bloodbath unless there is a change at the head of VW and full cooperation with authorities. Some heads need to roll to get investors buying back VW.”

The cars affected by the Volkswagen emissions scandal are more than the manufacturer sells in a year, and something will need to be done soon to fix the problem.

[Image via Scott Olson / Getty Images]