European carmakers, including Porsche and VW, experience a decline in stock prices due to news of 'dieselgate' legal actions in the UK.

• The stock prices of German carmakers such as BMW, Volkswagen, and Mercedes Benz were all down more than 1.5%, while Volvo Cars in Sweden experienced a 2.6% decline.
• The European Union is imposing import tariffs on Chinese electric vehicles, while carmakers in Britain are facing 1.5 million "dieselgate" lawsuits that could cost them at least £6 billion ($7.65 billion).
• In 2015, it was revealed that Volkswagen had been deceiving emissions tests in the U.S.

On Wednesday, European carmakers' shares dropped due to a report stating that major auto manufacturers may face legal action in Britain for allegedly deceiving emissions tests.

At approximately 10:35 a.m. London time, the shares of a German automaker fell by more than 7%, causing losses on the pan-European index.

BMW, Mercedes-Benz, and Volvo Cars were among the German, Swedish, and French carmakers that experienced a decline in their stock prices, with Volvo Cars experiencing the steepest drop of 2.6%. Valeo and Fiat-owner also saw their stocks fall by 2.6% and 1.4%, respectively.

The European Union imposed import tariffs on Chinese electric vehicles, while Reuters reported that carmakers are facing 1.5 million "dieselgate" lawsuits in Britain that could cost them at least ₤6 billion ($7.65 billion).

The report claimed that Mercedes-Benz and a U.S. car manufacturer were accused of deceiving customers about some vehicles' compliance with nitrogen oxide emissions standards, as stated by lawyers representing claimants in London's High Court on Tuesday.

Ford's spokesperson stated to CNBC that the carmaker does not see any value in the allegations and is strongly defending against them. Additionally, they emphasized that their vehicles and engines comply with all relevant emissions standards.

Mercedes-Benz did not respond to CNBC's request for comment on Wednesday morning.

The "dieselgate" scandal emerged in 2015 when it was discovered that Volkswagen had been deceiving on emissions tests in the U.S. by installing "defeat devices" in diesel vehicles to manipulate their emissions levels during testing.

In 2020, Volkswagen stated that the scandal had resulted in over 31 billion euros ($33.3 billion) in fines and settlements for the company.