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Tue 29 Sep 2015 12:49 PM

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Shares of Volkswagen Turkish distributor Dogus hammered as scandal widens

Dogus Otomotiv tumbled more than 12%, hit by concerns that the emissions cheating scandal

Shares of Volkswagen Turkish distributor Dogus hammered as scandal widens
(Getty Images)

Shares of Volkswagen AG's main Turkish distributor Dogus Otomotiv tumbled more than 12 percent on Monday, hit by concerns that the emissions cheating scandal at the German automaker could undermine sales of its local dealers.

Dogus imports more than 14 brands including VW group marques Porsche, Skoda and Audi, as well as Volkswagen.

Dogus is monitoring developments, its executive board chairman, Ali Bilaloglu, said in a statement, without saying what impact if any he expected from the scandal.

"The details regarding the affected vehicles globally and in Turkey will be determined following an investigation carried out by Volkswagen AG," he said.

The company did not say whether it plans to recall any vehicles in Turkey, or how many diesel cars could be impacted.

The VW marque achieved sales of more than 93,000 cars and light vehicles in Turkey in the first eight months of this year, making it market leader with a 15.5 percent share, according to industry data. There is no breakdown of how many of those sold had diesel engines.

Volkswagen has said 11 million worldwide had been installed with so-called "defeat devices" which allowed its cars to skirt emissions tests.

Shares of Dogus were down 12.7 percent at 10.05 lira at 0151 GMT, shaving around $100 million off its market value. The BIST 100 index, the broadest measure of Istanbul stock market performance, was down 1.3 percent.

Many Turkish market participants were away last week due to the Eid al Adha holiday, meaning Monday was the first day of active trade since the scandal broke.

German prosecutors launched an investigation on Monday into fraud allegations against former VW boss Martin Winterkorn over the rigging of emissions tests.

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