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| Many bonds issued by Volkswagon have been suspended from purchasing at the European Central Bank. |
Last week, Volkswagon revealed that the company was able to dodge emissions standards due to the software that more than 11 million diesel cars consisted of. Germany's motor authority is giving Volkswagon until October 7 to fix the scandal. If Volkswagon fails to come up with a technological solution, the company may face a global recall. A global recall like this would have a major impact on the world. Volkswagon contributes to 12.6 million contracts, 15% of which are in North America. This scandal is hurting Volkswagon's financing arm. The company's bonds fell dramatically last week and they took a €6.5 billion charge to cover the scandal's cost.
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