Paris prosecutors launch dieselgate investigation against Renault
Paris — Renault’s share price fell on Friday after Paris prosecutors said the group would be investigated for suspected "cheating" in emissions tests of diesel motors.
Amid Volkswagen’s emissions scandal, independent French experts found dangerously high levels of emissions from diesel engines of several car makers, including Renault.
Prosecutors ordered a probe into "cheating on key parts" and testing.
Renault shares were trading 2.4% lower at €84.16 at about 11am GMT, having opened over 1% higher. They slumped more than 4% in initial reaction to the news.
The probe comes after Fiat Chrysler fell foul of US environmental standards on Thursday. The company was charged with hiding software on diesel trucks which then spewed out excess emissions.
The Italian-US company immediately denied the charges and pledged to work with president-elect Donald Trump’s administration to resolve the issue "fairly."
Shock waves from Volkswagen’s "dieselgate" emissions scandal are still reverberating around the global automotive industry. US officials said on Wednesday the German group would plead guilty to three criminal charges and pay altogether $4.3bn in fines.
The US Justice Department charged six Volkswagen executives for the conspiracy. Five of them are said to be in Germany, and one was arrested in Miami on Saturday.