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Renault gets slap on the wrist

Renault is found guilty of using flawed emission filters, but cleared of installing similar cheating software to its shamed peer Volkswagen
January 19, 2016

Renault (FR:RNO) has been forced to recall and update emission filters on more than 15,000 vehicles after the French government confirmed that the carmaker's current systems exceeded legal limits in hot or very cold weather. The country's energy minister Segolene Royal, who claimed that other unnamed car companies had been guilty of similar errors, said readings needed to be based on real driving conditions, and not taken from laboratory-style settings.

IC TIP: Hold at 75.19p

While hardly great news, this update does at least clear Renault from damaging allegations that it installed cheating software. When news emerged that anti-fraud detectives had raided several of the group's offices last week, investors feared a repeat of the Volkswagen (DE:VOW3) scandal and responded by sending the shares down 21 per cent.