Published on May 1st, 2016 | by Daniel Sherman Fernandez0
PSA Group Shares Fall As Emission Tests Continue
PSA Group offices were recently raided by fraud investigators as part of a government probe on pollutants in the automobile sector. The French Economy Ministry’s fraud office said it searched 5 premises following “anomalies” in emissions tests. PSA sites in Saint-Ouen, Velizy, La Garenne-Colombes, Carrieres-sous-Poissy and Montbeliard were raided after irregularities were spotted in the nitrogen-oxide emissions of three diesel vehicles.
PSA was quick to issue a statement that said: “PSA Group confirms compliance of its vehicles in pollutant emissions in all countries where it operates. PSA Group is fully cooperating with the authorities.”
French authorities started a probe in September last year into Volkswagen’s emissions-rigging in its diesel cars and expanded the investigation to cover all carmakers. Separately, the country’s environmental regulator began randomly testing vehicles to check differences between lab results and real-world emissions.
The French Environment Ministry this month said that a committee appointed to look into emissions was hearing from carmakers and that tests were to be conducted on 100 vehicles. A ministry commission will hear Gilles Le Borgne, PSA’s head of research and development, and Christian Chapelle, the company’s head of drivetrains and chassis, on April 28.
PSA’s shares fell to as low as 13.47 euros and traded down 2.7% at 13.73 euros on the news.
The VW case has prompted investigations across several countries into Volkswagen, as well as checks on other car manufacturers and a tightening of emissions regulations that some industry analysts think could hit the entire diesel vehicle industry which is a key market for PSA and Renault.
Report compiled from Reuters & Bloomberg News.