Volkswagen’s scandal hits other European car stocks

On the day European stocks slid to their lowest level since last month’s global financial panic, carmakers were hit especially hard.

Much of the attention in the sector has been focused on Volkswagen’s deceptive diesel emissions testing—the scandal sent its stock sinking nearly 20% for the second time in as many day. But other manufacturers’ shares are coming under pressure as well:

In the US, most passenger cars run on gasoline. However, in Europe, diesel cars are much more popular for their fuel efficiency and because diesel is cheaper than gas. So when South Korea starts eyeing all German diesels askance, and European Union officials call for industry-wide investigations, the implications are far reaching.

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