VW set for Asian emissions probe after US recall; Shares drop 19%

German group recalls 500,000 cars

Authorities in Asia have said they will investigate the world's biggest-selling carmaker Volkswagen after it failed emissions compliance in the US, leading to 500,000 cars to be recalled and shares to tumble.

Yesterday Volkswagen's share price dropped 19%, wiping more than €15bn from its market capitalisation, as the chief executive Martin Winterkorn admitted and apologised for the German carmaker's wrongdoing. It was found that software in VW diesel cars in the US emitted less during tests than they would while driving normally. The group faces potential fines of up to $19bn after the US Environmental Protection Agency ordered Volkswagen to recall nearly 500,000 cars, which potentially had been fitted with "defeat devices". The carmaker also stopped selling a number of certain models in t...