BMW's share price plummeted this morning amid claims that one of its diesel vehicles exceeded the EU's emissions limit.
The German car giant's stock fell as much as 7.3 per cent this morning, although staged a slight recovery to a drop of around six per cent at pixel time.
The company was hit after reports surfaced that its X3 xDrive 20d model emitted 11-times the European air pollution limits during a road test.
The SUV was road-tested by the International Council on Clean Transportation, the same group who alerted U.S. regulators to the gap between Volkswagen's emissions in tests and on the road, Germany’s Autobild reported
But BMW has issued a statement denying any difference between emissions in a test environment and on the road.
The claim comes a day after Volkswagen's chief executive Martin Winterkorn resigned in the wake of a scandal in which the car company was found to have installed a "detect device" in millions of vehicles to help it cheat emissions tests.
The news surfaced on Friday afternoon, when US government department the Environment Protection Agency announced 480,000 cars would have to be recalled. Volkwagen has since admitted it could affect 11m cars.
Today Germany's transport ministry said Volkswagen admitted manipulation took place in Europe, according to Reuters.
More to follow...