VW Whistleblower Prompted Latest Admission of Fault

Volkswagen's disclosure that it had underreported carbon dioxide emissions affecting a possible 800,000 cars across Europe was prompted by an internal whistle-blower, the company announced on Sunday.

According to The New York Times, one of VW's engineers informed the company that CO2 emission figures had been manipulated since 2013 as goals were difficult to achieve legally.

"In the course of internal investigations, employees have admitted that there were irregularities in communication of fuel consumption values," Volkswagen said , according to the German newspaper, Bild am Sonntag.

The Times reports that tire pressures were increased to trick CO2 and fuel economy tests.

The latest allegations push VW deeper into crisis. In September the German car manufacturer told U.S. regulators that it had installed software to cheat nitrogen oxide emissions tests. VW's share price has dropped almost 40% since its announcement, according to the Guardian.

The first major investor to announce it would sue VW over its emissions fixing was reported by the Guardian over the weekend. The Scandinavian-based Nordea Asset Management said it planned to join a number of class-action law suits against VW.

VW's supervisory board meets today to discuss and assess the scale of damage that the scandal has caused the company, reports Reuters.