A new scandal is about to hit the automotive industry as there are some suspicions Renault has its very own Dieselgate.

A new scandal is about to hit the automotive industry as there are some suspicions Renault has its very own Dieselgate.

According to an official with the CGT union at Renault’s operations in Lardy, agents from the Economy Ministry’s fraud office visited several Renault sites that deal with standards testing and engine certification. This has fueled speculations the probe is actually about emissions standards as it was the case with the Volkswagen Group.

French anti-fraud detectives have apparently seized some computers from various Renault sites and right now it is believed an investigation is being conducted to find out whether Renault manipulated emissions tests.

After the news started spreading, Renault’s shares plummeted by 16 percent to €72.98 in Paris at local time 12:10 PM. At one point during the day, shares went down by 20% which represented the lowest value since 2008.

In the wake of what is shaping up to be a new scandal, shares of other European car manufacturers also took a hit, but less drastic. These include Peugeot (6.8%), BMW (4.6%), Daimler (5.7%), and VW (4.4%). Fiat Chrysler Automobiles (FCA) also suffered a loss of 7.87% later in the day. Keep in mind the value of a share is very dynamic and changes multiple times during a day.

We'll keep you posted once we hear more about what could become Dieselgate, The French Edition.

Source: marketwatch.com

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Renault shares take 20% dive after suspicions of faked emissions