BMW shares drop on report of high emission levels

BMW shares drop on report of high emission levels

24 September 2015, 12:45
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On Thursday shares of German auto giant BMW steeply dropped as a German newspaper claimed its diesel engines were "significantly" exceeding regulatory limits.

Earlier in the day, Auto Bild - a publication owned by Axel Springer - said in an exclusive report that BMW engines were emitting nitrogen oxide levels that were 11 times more than the current limit set by the European Union.

Referring to road tests by the International Council on Clean Transportation (ICCT), it said that a model of the BMW X3 was emitting more exhausts than the Volkswagen car that is currently at the center of the emissions scandal.

Peter Mock, the Europe Managing Director at the ICCT, said that all data "suggest that this is not a VW-specific issue."

BMW shares were last 8% lower, after the report was published.

This came as other European auto makers had a bout of buying after several sessions of declines.

Volkswagen shares were higher by 5.4% on Thursday morning.

A BMW spokesman said in an interview with CNBC that there were "no specific activities or technical provisions which influence the emissions recorded during the test mode. Our exhaust treatment systems are active whether on the test bench or on the road."

On Sunday, Volkswagen admitted that it had cheated on U.S. emissions tests and has since issued a profit warning and its CEO Martin Winterkorn has resigned.

The issue has driven concerns that it could be a industry-wide problem with several major companies having exposure to the same diesel technology.

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