Shares in Fiat Chrysler fell as much as 4 percent, after news that French prosecutors have opened a formal investigation into the carmaker over allegations that it cheated in diesel emission tests. Ivor Bennett reports
Given the endless twists and turns, it's perhaps no wonder the diesel emissions scandal is still making markets queasy. Shares in Fiat Chrysler falling as much as 4 percent in early trading on news it's being formally investigated by French authorities. SOUNDBITE (English) JEREMY STRETCH, HEAD OF FX STRATEGY, CIBC, SAYING: "If this probe is set to continue then clearly it will be damaging for the group concerned and I think also then that would add to the presumption, or the fear, that it isn't just a predominantly VW-led story, it is a much wider industry threat." That was always the concern when the scandal first broke. Prompting several European countries to launch their own on-road emissions tests. Authorities in France found some Fiat Chrysler models pumping out more than 10 times the regulatory limits. Devices that can reduce emissions under normal test conditions were also found to be widespread. Renault, VW and Peugeot parent PSA were also referred to prosecutors. SOUNDBITE (English) JEREMY STRETCH, HEAD OF FX STRATEGY, CIBC, SAYING: "Markets will monitor this very closely to see whether there is more than just a little bit of smoke about this story and whether it is literally a case of widening of the probes and/or the potential ramifications for the imposition of potential penalties further down the track on another auto maker." A spokesman for Fiat said it would continue to cooperate with the authorities on all investigations Adding that its diesel vehicles fully comply with emissions regulations And that it was confident the matter would be fully resolved.