Pressure grows on Volkswagen as bad news piles up

On Tuesday, VW admitted that it had understated the carbon dioxide emissions for 800,000 cars, widening the scope of a scandal that has forced the ouster of a CEO and prompted investigations and lawsuits on several continents.

The company has been unable halt the flow of bad news since mid-September, when the U.S. Environmental Protection Agency said Volkswagen had installed software on 482,000 cars that enabled them to cheat on emissions tests for nitrogen oxide, a pollutant that contributes to smog and respiratory problems.

The commission has enforcement powers to ensure that manufacturers respect their obligations in terms of carbon dioxide emissions, including the possibility of imposing fines.

Germany's transport minister indicated that VW will be on the hook for the costs of higher car taxes following the revelation that carbon dioxide emissions were understated.

Transport Minister Alexander Dobrindt noted that Germany's car tax is calculated on the basis of engine size and carbon dioxide emissions, and so "if these vehicles emit more CO2, over and above the respective limit, that makes a new calculation necessary."