A VW Golf GTI stands in a parking lot within sight of the brand tower on the grounds of the VW factory in Wolfsburg.
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Shares of European carmakers fell after a Wednesday report that some of the world's biggest carmakers could face lawsuits in Britain for allegedly cheating emissions tests.
Shares of German car manufacturer Porsche fell by more than 7% around 10:35 a.m. London time, leading to losses in the pan-European market Stoxx 600 Table of contents.
German car manufacturers, including BMW, Volkswagen And Mercedes Benz All three shares were down more than 1.5%, while Swedish Volvo Cars fell 2.6%. French Valeo and Fiat owner Stellantis fell by 2.6% and 1.4% respectively.
It comes as the European Union imposed tariffs on Chinese electric vehicles and beyond Reuters reported this It was revealed on Tuesday that carmakers in Britain are facing 1.5 million 'dieselgate' lawsuits that could cost them at least ₤6 billion ($7.65 billion).
Manufacturers including Mercedes-Benz and the American car manufacturer Ford allegedly misled customers about some vehicles' compliance with nitrogen oxide emissions standards, the report said, citing plaintiffs' lawyers in London's High Court on Tuesday.
A Ford spokesperson told CNBC that they see “no merit” in the claims and that the automaker was “vigorously defending itself against them.” They added: “Our vehicles and engines meet all applicable emissions requirements.”
A Mercedes-Benz spokesperson was not immediately available for comment Wednesday morning when contacted by CNBC.
The 'dieselgate' emissions scandal refers to reports that first surfaced in 2015 that Volkswagen was caught cheating on emissions tests in the US. Volkswagen admitted to installing so-called 'defeat devices' to alter the emission levels of diesel vehicles during testing.
Volkswagen said in 2020 that the scandal had cost the company more than 31 billion euros ($33.3 billion) in fines and settlements.
