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Volkswagen AG Chief Executive Officer Matthias Mueller last week declared it was time to make the company “more fun to work for,” then on Saturday he headed to the Leipzig Opera Ball -- where he was photographed smiling in a tuxedo, with a bottle of champagne on the table and his arm around a former tennis star.

On Tuesday, the fun ended.

Matthias Mueller and Barbara Rittner in Leipzig Photographer: Franziska Krug/Getty Images for Leipziger Opernball

That evening, the automaker said some gasoline cars and more diesels beyond the ones already under scrutiny had worse-than-reported emissions of carbon dioxide. The revelation, which came six weeks into the crisis, sent its stock down 9.5 percent Wednesday. VW’s supervisory board issued a sharply worded statement saying it was “deeply concerned” and would meet soon to consult on “further measures and consequences.”

Because CO2 can’t be filtered out like diesel emissions, “in a way it’s a bigger issue,” Philippe Houchois, an analyst with UBS Group AG, said on Bloomberg TV. “It seems like the board itself is getting into a higher level of emergency.”

Volkswagen said an internal probe showed 800,000 cars had “unexplained inconsistencies” in their CO2 output, a key measure of fuel efficiency and the basis for taxation and emissions regulation in Europe. That adds to the 11 million diesel cars the company had earlier said would be recalled to fix emissions systems. VW estimated the new finding means it will need to add 2 billion euros ($2.2 billion) to the 6.7 billion euros already set aside to repair dirty diesels.

‘Stop at Nothing’

The latest revelations step up the pressure on Mueller, who was appointed just five weeks ago to steer the company through widening investigations into its cheating on emissions testing. The revelations came a day after VW rejected claims by the U.S. Environmental Protection Agency that it had also cheated on emissions in vehicles made by Porsche -- the brand Mueller headed before taking over the top job.

“From the very start I have pushed hard for the relentless and comprehensive clarification of events,” Mueller said in an e-mailed statement late Tuesday. “We will stop at nothing and nobody.”

Fraser Hill, an analyst at Merrill Lynch in London, cut his price estimate for VW shares, saying the widening scandal risked further tarnishing the company’s image with consumers.Alexander Haissl, an analyst at Credit Suisse Group AG in London, said the latest revelations -- just a week after VW released earnings that appeared to show it had the crisis under control -- raised concerns about whether management really knows what’s going on deep in the company.

“The key question remains if there are any further disclosures to be made,” Haissl said in a note to investors. “We see Volkswagen’s credibility further deteriorating.’’

Share Drop

VW’s shares dropped to 100.45 euros, 38 percent below their pre-crisis level. The company has lost 24 billion euros in value since the scandal became public on Sept. 18. Its bonds also fell on Wednesday, while credit-default swaps insuring Volkswagen’s debt jumped, Bloomberg data show.

The latest issues affect Volkswagen’s Polo, Golf and Passat models, Audi’s subcompact A1 and A3 hatchback, the Skoda Octavia, and the Seat Ibiza and Leon, with most in Europe. While smaller diesel motors account for the vast majority of affected cars, a specific type of 1.4-liter gasoline engine is also involved, the company said. Germany’s Transport Minister Alexander Dobrindt said that 98,000 gasoline cars are affected.

The 3.0-liter diesel motors targeted on Monday by the EPA probe aren’t part of the latest company finding. Volkswagen rebuffed allegations that its cheating on diesel-emissions tests included the Porsche Cayenne and VW Touareg sport utility vehicles and as well as larger sedans and the Q5 SUV from Audi, setting up a showdown with U.S. officials.

“You’re fighting against the biggest regulator in the world,” Arndt Ellinghorst, an analyst with Evercore ISI in London, said on Bloomberg TV. “This can get pretty ugly.” The Porsche, VW and Audi brands have voluntarily stopped the sale of the targeted vehicles in the U.S.

‘Painful Process’

Mueller, who was dancing in Leipzig with former professional tennis player Barbara Rittner, has vowed to carry out a comprehensive investigation and pledged to overhaul the company’s autocratic culture. He says must become more transparent to ensure the similar mistakes don’t happen again.

“This is a painful process, but it is our only alternative,” Mueller said. “For us, the only thing that counts is the truth.”

— With assistance by Tom Lavell, Manus Cranny, and Katie Linsell

(Updates with closing share price beginning in third paragraph.)