BMW shares slip on report of high emission levels – CNBC
On Sunday, Volkswagen admitted that it had cheated on U.S. emissions tests and has since issued a profit warning and its CEO Martin Winterkorn has resigned.
The scandal has raised fears that it could be a industry-wide issue with several major companies having exposure to the same diesel technology.
On Thursday El Pais reported that VW’s Spanish subsidiary, SEAT, had installed over 500,000 of the tampered diesel engines into its vehicles since 2009.
In an email to the Spanish newspaper, Seat admitted to having “equipped some vehicles with the Volkswagen Group’s EA189 engines,” but would neither confirm nor deny this figure.
JPMorgan auto analyst Jose Asumendi calculated Tuesday that globally VW had 25 percent of engines exposed to diesel technology. BMW and Daimler have 35 percent and 45 percent, he added, with Peugeot having 40 percent.
Mike van Dulken, head of research at Accendo Markets, said that reports of another major carmaker having potentially been ‘at it’ would hardly come as a surprise.
“It begs the question of how ‘polluted’ the industry will turn out to be,” he said in a note on Thursday morning.
“Claimed MPG (miles per gallon) figures have been pie-in-the-sky for years and electric cars whilst ‘clean’ in the emissions sense remain suspiciously/prohibitively expensive and poor ranging.”