Volkswagen drops 23% after admitting diesel emissions cheat

The market value for Volkswagen AG took a 23 percent hit – nearly $18 billion ­ on Monday after the company admitted to cheating on U.S. air pollution tests for years.

According to the Environmental Protection Agency, VW fit diesel vehicles shipped stateside with software that only engages pollution controls when the car is undergoing official emissions review. The EPA estimates the cars polluted 10 to 40 times the legal levels.

The Wolfsburg, Germany-based company is now the subject of a U.S. probe, also drawing the interest of the European Commission. VW suspended sales of the models involved – roughly 500,000 vehicles – on Sunday, faces as much as $18 billion in fines and possible criminal prosecution.

VW sold 366,970 cars in the U.S. during 2014, down 10 percent from the year before.

Read more from Bloomberg Business.