Shares in Renault fell around 20 per cent today, knocking nearly €2bn off the company's valuation, amidst reports of police raids relating to a suspected probe into the French auto giant's emissions reporting.
The company this morning confirmed that raids had taken place at several of its production facilities in France, stressing that it was co-operating fully with investigators. It told the BBC that it did not use emissions cheating devices, which were at the centre of the emissions reporting scandal that engulfed rival auto giant VW last year.
French authorities refused to provide details on the target of the investigation. However, early local media reports on the raids cited union officials who said the probe had targeted engine control units, fueling speculation that the investigation is related to emissions tests. Reports said the authorities had seized personal computers from the raided facilities.
Shares in Renault dropped 21 per cent at one point this morning, marking the biggest fall the company has experienced since 1999.
The reports suggest the fall-out from the high profile VW emissions rigging scandal is continuing to reverberate across the industry.
Last autumn the German auto giant admitted to using so-called defeat devices to artificially reduce emissions from some of its vehicles during official emissions testing.
Following a US investigation the company confirmed around 500,000 cars in the US had been fitted with the cheat devices, while plans were swiftly announced to recall 8.5 million cars in Europe that may have been similarly affected.
The wider auto industry issued a series of statements insisting the VW devices were an isolated case. But authorities globally responded by launching their own investigations into VW and the wider industry.
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