Stricken Volkswagen sees shares tumble for third day

How long can chief executive Martin Winterkorn hold on?

Volkswagen is being torn apart across the world. Shares are in freefall, it is facing legal action in Europe and America, multi-billion-dollar fines, and the company has said over 11m cars could be recalled.

Analysts have said the scandal threatens to become the worst in the company’s 78-year history.

Shares fell for the third day in a row, falling 19.8% yesterday, 18.6% on Monday, and in trading today, prices fell by a further 8% before rallying slightly and rising 3%.

The car industry has been thrown into a growing crisis, as other manufacturers now face higher scrutiny.

Meanwhile VW chief executive Martin Winterkorn has said he will not quit, despite growing pressure to do so. He said he was “endlessly sorry” for the scandal, in which he was forced to admit the company had knowingly defrauded emissions testers to get better ratings on diesel engines.

Speaking to the FT, analysts at UBS said: “We see high probability that CEO Winterkorn will resign if the group is found to have acted improperly. This would reverse newfound stability but support a more aggressive approach to the turnaround.”

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