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11M VW diesels affected, Porsche and Audi under investigation

Volkswagen's diesel scandal is growing exponentially larger. In a new statement, the company admits that 11 million vehicles worldwide might be equipped with software capable of evading emissions testing. In addition, the Environmental Protection Agency is beginning an investigation into the 3.0-liter V6 in Audi models and the Porsche Cayenne in the US, according to The Detroit News. The automaker claims that from its investigation so far, the "relevant engine management software is also installed in other Volkswagen Group vehicles with diesel engines." However, the company finds that the "noticeable deviation" in test results and real-world numbers only relates to the Type EA 189 powerplant. That still leaves 11 million vehicles potentially skirting emissions rules, though. Governments around the world have started taking a closer look into the company, too. In the US, the EPA has begun testing VW's V6 diesel because "they were certified well before we knew what we know now," Christopher Grundler, director of the EPA's Office of Transportation and Air Quality, said to The Detroit News. The agency has started checking diesels from other automakers to make sure they're meeting the rules, as well. Germany, the European Union, and South Korea have instituted similar investigations. In response, VW is setting aside 6.5 billion euros ($7.25 billion at current rates) to cover servicing all of these diesels. The company admits that the figure might have to be adjusted depending on what happens next. The money is being deducted from its third-quarter earnings. Related Video: VOLKSWAGEN AG HAS ISSUED THE FOLLOWING STATEMENT: Sep 22, 2015 Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines. New vehicles from the Volkswagen Group with EU 6 diesel engines currently available in the European Union comply with legal requirements and environmental standards. The software in question does not affect handling, consumption or emissions. This gives clarity to customers and dealers. Further internal investigations conducted to date have established that the relevant engine management software is also installed in other Volkswagen Group vehicles with diesel engines. For the majority of these engines the software does not have any effect. Discrepancies relate to vehicles with Type EA 189 engines, involving some eleven million vehicles worldwide.

VW stock plummets as Euro markets open

The fallout from Volkswagen's installation of an emissions "defeat device" on nearly 500,000 diesel-fueled models in the US is already hitting the automaker hard on the German stock exchange. At one point, the share price plummeted 23 percent to erase the equivalent of $17.6 billion in value. Things eventually bounced back slightly to a still severe 19.23 percent loss, according to Bloomberg as of this writing. The scandal couldn't come at a worse time for chairman Martin Winterkorn. The VW supervisory board takes up the issue of renewing his contract on September 25, Bloomberg reports. If things get bad enough, the door could be open for a new boss to step in. Dealers in the US might start feeling the pain from this, as well. Affected 2015 VWs that are still at showrooms are now under a stop sale. Until the issue is straightened out, the Environmental Protection Agency isn't certifying the company's 2016 diesel models with the 2.0 TDI, either. The diesel emissions problem was first discovered by research from West Virginia University and the International Council on Clean Transportation. In some cases, the engines can produce 40 times more nitrogen oxides than allowed. The automaker could be on the hook for $18 billion in fines for the breach, but the actual figure is expected to be lower. In response, Winterkorn has issued a public apology and ordered an independent investigation into what happened. The EPA and California Air Resources Board have also been looking into the situation. This could become an international problem, though. According to The Detroit News, European authorities might begin similar inquires to check the automaker's diesel emissions there.

Elon Musk says VW scandal proves limits of fossil fuel cars

Tesla Motors chief Elon Musk didn't appear to mince words when commenting on Volkswagen's diesel-emissions scandal when making comments at the Federal Ministry for Economic Affairs and Energy conference in Berlin this week, according to Bloomberg News. Musk called the news of scandal "obviously bad." He also used the opportunity to note that he thought the German automotive industry may be lacking when it came to getting its powertrains to cut emissions. Pretty tough talk in Berlin. Musk did note that, when it came to clean electricity generation, Germany was ahead of many countries. But he also used the occasion to note that global industries could do a better job addressing "the chemical constituency" of the world's air and oceans. Musk also spoke to the Belgian press about the VW scandal this week. Asked if people might lose their faith in green technology, Musk said that what the scandal shows is that "we've reached the limit of what's possible with diesel and gasoline. And so, the time, I think, has come to move to a new generation of technology." You can see his comments in the video above, starting at 1:12. Musk made these comments as the automotive industry reacts to news that Volkswagen tried to game the system by manipulating its diesel-powered vehicles to meet worldwide emissions regulations. VW has set aside $7.3 billion to address the issue, and has estimated that at least 11 million vehicles may have been programmed to cheat emissions mandates. As a result of the scandal, VW CEO Martin Winterkorn has stepped down and Porsche chief executive officer Matthias Muller has taken over. For those keeping track, VW sold almost 51,000 diesel vehicles in the US through the first eight months of the year. That is about eight percent less than a year earlier but is probably about three times the number of Tesla Model S electric vehicles Musk sold in the US (we say probably because Tesla discloses neither monthly nor country-specific sales). So, while this may not be a case of diesel envy, Musk did have a pretty wide-open shot to tweak VW and its reliance on diesel technology. News Source: Bloomberg News, EV AnnexImage Credit: AP Photo/Ringo H.W. Chiu Government/Legal Green Tesla Volkswagen Emissions Diesel Vehicles Electric vw diesel scandal