...On 18 September 2015, the US Environmental Protection Agency (EPA) issued a notification of violation of the Clean Air Act to VW, alleging that some VW diesel cars include software (a defeat device) that circumvents EPA emission standards for certain air pollutants, in particular nitrogen oxides (NOx). On 22 September 2015, VW announced that approximately 11m diesel vehicles, including engines of type EA 189, had been affected worldwide (8m of those in Europe). Fitch expects at least a temporary impact on used car prices for these affected vehicles. If VW's brand image is permanently damaged, the used car prices of all VW cars could fall (see Fitch: Crisis May Hit VW Auto ABS Through Used Car Prices). Apart from the impact on used car prices, there are further uncertainties which may negatively impact transactions that include VW vehicles. These relate in particular to the planned technical fixes adversely affecting the characteristics of the vehicles, resulting in, for example, higher...
