Platinum turns cheap thanks to Volkswagen scandal Posted On : 09-Oct-2015
But still, there is some connection between them. For, prices of platinum jewellery have come down partly due to Volkswagen AG emissions scandal.
Platinum is used in autocatalytic converters in diesel cars and Volkswagen's confession has left an impact on the price of platinum in India already. Earlier this week, platinum was being sold in India for 25,000 per 10 gram, less than gold that was trading at Rs 26,580 per 10 gram,
"Platinum prices have fallen drastically since the Volkswagen emission scandal that surfaced in third week of September. Last Friday platinum price had fallen below $900 an ounce for the first time in nearly seven years," said a media report, quoting a trade analyst.
On Friday, 18 September 2015, the United States Environmental Protection Agency (EPA) said beginning in 2008 Volkswagen improperly installed Engine control unit (ECU) software determined to be a "defeat device", in violation of the Clean Air Act to circumvent environmental regulations of NOx emissions by diesel engines 2009-2015 model year Volkswagen and Audi cars.
The software detects when the cars were being subject to emissions testing, and then fully enabled ECU emission controls to successfully pass. However, during normal driving conditions, emission control software was shut off in order to attain greater fuel economy and additional power, resulting in as much as 40 times more pollution than allowed by law.
Volkswagen admitted to using the defeat device, and has been ordered to recall approximately 482,000 cars with four-cylinder 2.0-liter TDI engines. United States federal penalties may include fines ranging up to US$18 billion, and possibly criminal charges.