The emissions scandal appears to be reigniting, as French anti-fraud authorities reportedly raided Renault's offices looking for engine control units.
Not too long ago, Volkswagen shook the auto industry with a huge scandal, as it came to light that the automaker cheated on its emission tests. The scandal quickly escalated and dragged other carmakers into the mess as well, and it's not nearly over.
Back in December, Volkswagen blamed its engineers for cheating on the emission tests, and promised to come up with a fix to make up for the mishap. However, U.S. and California regulators have now rejected the carmaker's proposed fix, indicating that the emission scandal was far from over.
Adding more fuel to the fire, a new AFP report published by The Telegraph now reveals that Renault may be facing an emissions scandal of its own. According to the report, CGT Renault union representatives said that French anti-fraud authorities raided Renault's offices last week.
This raised speculation of a potential probe into emissions foul play at Renault, as authorities are said to have raided the carmaker's offices looking for the engine control units packed in certain vehicles. The personal PCs of several directors were reportedly seized as well.
"The probe targeted the sites' engine control units, suggesting that the raids 'are linked to the consequences of the Volkswagen rigged-engines affair,' the union said," reads the report.
As the whole Volkswagen fiasco previously proved, such implications of foul play take a heavy toll on a company's stock. Following news of the raid, Bloomberg reported that Renault saw a 20 percent drop in share price. If shares already tanked significantly only at the prospect of a potential scandal, the automaker could be severely affected should this escalate even further.
However, Renault confirmed to Reuters that fraud investigators were indeed interested in the way it was using exhaust emissions technology, but as part of a wider probe of factories and parts following an earlier investigation.
Renault told Reuters that investigators found "no evidence of a defeat device equipping Renault vehicles" to date.
