French automotive company Renault has seen a £5billion market value drop since reports emerged that French anti-fraud detectives have raided some of the manufacturer’s properties.
Renault confirmed on Thursday, January 14, that French government authorities had begun investigations into the manufacturer’s emissions and mpg specifications and that they were fully co-operating with the authorities. The investigations come just months after the Volkswagen emissions scandal, which found that the automotive company had installed defeat device software in their diesel vehicles to cheat emissions tests.
Twenty-five of Renault’s vehicles have been retested by the French Homologation Authority, but the French energy minister, Segolene Royal, has confirmed that the tests have not found anything amiss with the manufacturer’s automobiles.
Madame Royal said that “there is no fraud at Renault. Shareholders and employees should be reassured”, but that some vehicles produced by other automotive manufacturer’s have been found to have unacceptable levels of CO2 and NOx. The French government authorities are to retest the emissions and mpg of 100 French vehicles.
Renault saw their shares fall by 21 per cent on Thursday, plummeting from €86.6 down to €69.7, and resulting in Renault’s worst trading day for over 20 years, despite Madame Royal’s reassuring words.
The Volkswagen emissions scandal is said to have cost the company €30billion, after 11 of its vehicles were found to be in violation of emission regulations.