The International Council on Clean Transportation known as the ICCT was the group that alerted the U.S. regulators and auto news watchers about a possible emission test failure in Volkswagen vehicles.
The issue was identified in the diesel variant which created a huge uproar throughout the globe. Volkswagen stocks immediately plummeted to unprecedented levels and the U.S. environmental protection agency initiated an in-depth report on all vehicles that didn’t comply with their regulations. Volkswagen recalled all the alleged diesel cars and promised customers that a proper compensation will be made. The company is now expected to face $2 billion or higher in loses because the allegations have now expanded to the European market.
Before the hype could die, the same group has found that the diesel variant of the BMW X3 SUV emits pollutants that are 11 times more than the allowed numbers. The news was reported by a German website named the Auto Bild and has spread by wildfire since then. The sports utility vehicle made by the German automaker BMW emits nitrogen oxide in higher quantities than it was allowed to when in operation.
Compared to Volkswagen’s Passat, it is much higher while the Jetta beats BMW’s X3 in emission violation because it emits 22 times higher nitrogen oxide than permitted by the government bodies. While other models from BMW have passed the test, it is the BMW X3 SUV that is under question. Due to these allegations, the company’s stocks have started hitting the bottom. Unless they could come up with a detailed response, stocks are expected to keep going down.
Meanwhile, the first report from BMW completely refutes such a claim. In their statement, the company representative said, “We always comply with all legal requirements which vary from one country to another. Besides, we work meticulously to ensure that all our vehicles adhere to local testing requirements. The emission results of your vehicles are always the same, be it in a testing environment or on the road, we deliver uncompromised results to our loyal patrons”.
The first response is quite generic which didn’t have any impact on the stocks so far. The company’s shares fell down by 10 percent with no sign of stabilizing anytime soon. BMW also added that they are ready to have any of their vehicles tested by relevant authorities to reconfirm the fact that they do comply with emission requirements.
With diesel variants facing so much criticism, it won’t be surprising if automakers skip the models altogether and opt for hybrids or EVs in 2016.