The world’s biggest automaker, Volkswagen, is under global assault after it was accused of conspiring regulators by installing defeat devices in its cars. In its every market regulators are tightening their investigations over the German carmaker.
Now Volkswagen has been banned by Switzerland government, abandoning its diesel cars in the country. So far this is the most severe reaction taken by any government in response to this scandal.
Other countries which are conducting enhanced investigations over emission scandal include Germany, US, and the UK and it is likely that the firm will face sanctions in these countries as well.
The ban affects nearly 180,000 Volkswagen cars, including 1.2-litre, 1.6-litre and 2.0-litre diesel engines for the VW, Audi, Seat and Skoda brands, which are still in the showrooms. Although, already Volkswagen brand owners will be allowed to continue driving, according to Swiss federal roads office.
After the scandal the major hit to the company was the stepping down of its CEO, Martin Winterkorn, who resigned on Wednesday. Quickly on Friday, the firm appointed a company veteran Matthias Mueller as its chief executive, hoping high from Mr. Mueller to tackle this serious situation.
The firm has also fired an undisclosed number of staff members which it claimed were involved in this scandal and further the firm said the scandal was the result of “unlawful behaviour of engineers and technicians involved in engine development”. The firm has blamed a small group of people.
VW has confessed that 11m vehicles, which include 5m Volkswagen passenger cars, were equipped with defeat devices and dedicated separately €6.5bn (£4.8bn) to pay for the costs of the crisis. Although, it can also face a fine of up to $18bn (£11.8bn) from US regulators and one of the biggest legal claims in history from customers and shareholders around the world.
