Berlin, Sept. 21 (Reuters): Volkswagen shares plunged by nearly 20 per cent on Monday after the German carmaker admitted it had rigged emissions tests of diesel-powered vehicles in the United States, and US authorities said they would widen their probe to other auto makers.
German officials, alarmed at the potential damage the scandal could inflict on its car industry, urged Volkswagen to fully clear up the matter and said it would investigate whether emissions data had also been falsified in Europe.
The US Environmental Protection Agency (EPA) said on Friday the world's biggest carmaker by sales used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion.
The EPA and California officials said on Monday they would test the use of software in diesel vehicles from other manufacturers for similar possible violations. In addition to Volkswagen, automakers, including General Motors Co and Fiat Chrysler Automobiles sell diesel cars and SUVs in the United States.
"You will understand that we are worried that the justifiably excellent reputation of the German car industry and in particular that of Volkswagen suffers," German economy minister Sigmar Gabriel said.
VW shares fell 18.6 per cent to close at 132.20 euros, wiping some 14 billion euros ($15.6 billion) off its market cap. Shares in Porsche SE, a holding company which controls 51 per cent of VW's common stock, also plunged around 20 per cent, while the European autos index was down 4.1 per cent.
Germany's transport minister was due to discuss the issue with Volkswagen chief executive Martin Winterkorn on Monday, two government sources said.
Winterkorn said on Sunday he was "deeply sorry" for the breach of US rules and ordered an investigation. People including a VW supervisory board member said Winterkorn may have to resign.
"This disaster is beyond all expectations," said Ferdinand Dudenhoeffer, head of the Center of Automotive Research at the University of Duisburg-Essen.
Analysts said it was unclear whether other auto makers had also broken rules or what the ultimate cost could be for VW, which reported 2014 net income of 10.84 billion euros ($12.15 billion) according to Thomson Reuters data.
German rivals Daimler and BMW said the accusations made by authorities against VW did not apply to them.
Industry experts predicted the scandal would hit VW hard, just as it was hoping to move on from a damaging leadership battle, with a supervisory board meeting on Friday due to discuss a new company structure and management line-up.
