Carmaker’s shares fall as French prosecutors launch inquiry just a day after US authorities charged Fiat Chrysler

This article is more than 3 years old

This article is more than 3 years old

French prosecutors have announced they will investigate Renault over suspected “cheating” in emissions tests of diesel motors, causing shares in the carmaker to fall.

Following a massive emissions scandal involving Volkswagen, independent French experts found dangerously high levels of emissions from diesel engines of several carmakers, including Renault, the Paris prosecutors office said on Friday.



Prosecutors have ordered an investigation into “cheating on key parts (of vehicles)” and into the quality of the tests carried out.

Fiat Chrysler used software to cheat diesel emissions testing, EPA alleges Read more

Renault shares closed down about 3%.

Renault insisted its engines complied “with French and European regulations”.

“Renault vehicles are all and have always been homologated in accordance with the laws and regulations. They are compliant with the applicable standards.

“Renault vehicles are not equipped with cheating software affecting anti-pollution systems.”

The investigation comes after another global carmaker, Fiat Chrysler, fell foul of US environmental standards on Thursday. The company was charged with having hidden software on diesel trucks which spewed out excess emissions.

The Italian-American company immediately denied the charges and pledged to work with president-elect Donald Trump’s administration to resolve the issue “fairly”.

The UK has lodged an urgent request with US authorities for information on the allegations against Fiat Chrysler.

The US Environmental Protection Agency said undisclosed software on the 2014 to 2016 models of Grand Cherokees and Dodge Ram 1500 trucks allowed the vehicles to emit more nitrogen oxides than permitted.

The shockwaves from VW’s emissions scandal are still reverberating around the global auto industry. US officials said on Wednesday that the German giant will plead guilty to three criminal charges and pay a total of $4.3bn in fines to settle the emissions cheating scandal known as “dieselgate”.

The US justice department also charged six Volkswagen executives deemed responsible for the conspiracy, five of whom are believed to be in Germany with one arrested in Miami on Saturday.

Earlier this week a group of 10,000 UK VW owners filed a class action lawsuit against the German car firm, seeking £30m, or £3,000 each.

The chair of a parliamentary committee on the environment and consumer group Which? both welcomed the claim, which VW said it would “robustly” contest.

If the company had to pay £3,000 to each of the 1.2 million people who own affected cars, including its Škoda, Audi and Seat marques, it would cost about £3.6bn.



The German firm has yet to reach a settlement with British and European owners affected by the scandal, in which the company admitted using “defeat devices” to cheat emissions tests, making its cars appears greener than they were.



It has not compensated British owners despite reaching a £15bn settlement with 500,000 US drivers, offering instead to fix affected vehicles.

The class action suit, which is being led by law firm Harcus Sinclair, is expected to claim that drivers should be compensated because they paid extra for what they thought were clean diesel cars.