Lu Tianyu via flickr
Bonds of the French car manufacturer Renault collapsed today during trading at the Paris stock exchange on 22%, which was the largest landslide for over the past 17 years. The stock price began to fall rapidly after Agence France-Presse reported on the visit of representatives of the Anti-Fraud Department of the French economy to the automaker’s several plants. In addition, it became known that the company’s computers were confiscated.
As it turned out, a number of representatives of the Ministry visited the Renault plant on 7 January, yet nothing about this was reported then. Moreover, neither the Department to combat fraud, nor the company commented on the incident. The manufacturer, however, told Bloomberg that he intends to issue an official statement on the matter later.
Presumably, the French investigators’ raid linked to the investigation related to the scandal surrounding the German automaker Volkswagen’s illegal use of software to hide the real amount of harmful emissions of vehicles. This is confirmed by a representative of the trade union Florent Grimaldi. He said that the plants visited by the investigators are related to certification and testing of engines standards.
As a result, shares of Renault reached the level of € 67 in the course of trading, having fallen from morning’s € 85,30. Last time, such a serious collapse of quotations was recorded January 4, 1999. The current slump has already led to loss of more than € 5,5 billion. By the time of the article’s publication, the French producer’s bonds went up, reaching the mark of € 76,6 per share.
September 18, the US government accused the Volkswagen Group in installing car software that allowed them to bypass the United States rules on emissions to the environment. According to Deputy Director of the United States Environmental Protection Agency, Cynthia Giles, "in other words, these cars have in-built software that turns off the emissions control and cleaning system during normal driving and switches them on when the exhaust composition is checked." At the same time, the agency stated that the practice, which used the German concern in the United States between 2009 and 2015, could cost them $ 18 billion as a penalty.
source: bloomberg.com
As it turned out, a number of representatives of the Ministry visited the Renault plant on 7 January, yet nothing about this was reported then. Moreover, neither the Department to combat fraud, nor the company commented on the incident. The manufacturer, however, told Bloomberg that he intends to issue an official statement on the matter later.
Presumably, the French investigators’ raid linked to the investigation related to the scandal surrounding the German automaker Volkswagen’s illegal use of software to hide the real amount of harmful emissions of vehicles. This is confirmed by a representative of the trade union Florent Grimaldi. He said that the plants visited by the investigators are related to certification and testing of engines standards.
As a result, shares of Renault reached the level of € 67 in the course of trading, having fallen from morning’s € 85,30. Last time, such a serious collapse of quotations was recorded January 4, 1999. The current slump has already led to loss of more than € 5,5 billion. By the time of the article’s publication, the French producer’s bonds went up, reaching the mark of € 76,6 per share.
September 18, the US government accused the Volkswagen Group in installing car software that allowed them to bypass the United States rules on emissions to the environment. According to Deputy Director of the United States Environmental Protection Agency, Cynthia Giles, "in other words, these cars have in-built software that turns off the emissions control and cleaning system during normal driving and switches them on when the exhaust composition is checked." At the same time, the agency stated that the practice, which used the German concern in the United States between 2009 and 2015, could cost them $ 18 billion as a penalty.
source: bloomberg.com