Volkswagen's chief executive has issued an apology after US regulators found they had been cheating their way through diesel emissions tests.
"I personally am deeply sorry that we have broken the trust of our customers and the public," said Martin Winterkorn.
An investigation has been launched into the piece of software which has been allowing VW Group vehicles to emit less during test conditions than they would during everyday driving.
VW's shares had dropped by 19% in Frankfurt within hours of the announcement. The Environmental Protection Agency (EPA) found the so-called "defeat device" in a range of VW Group diesel cars including the Audi A3, VW Jetta, Beetle, Passat and Golf models.
VW could face a potential fine of up to $18 billion dollars - in addition to paying for the recall - and VW executives could also face criminal charges.
This news is particularly poignant in a year where Volkswagen became the top-selling car manufacturer in the world, overtaking Toyota.
UPDATE (23/09/2015 4:30pm):
Martin Winterkorn has resigned as chief executive of VW, he has stated that he was "shocked by the events of the past few days".
"I am doing this in the interests of the company even though I am not aware of any wrong doing on my part," he continued.
"I am clearing the way for a fresh start with my resignation," he added. "The process of clarification and transparency must continue. This is the only way to win back trust."
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