French investigators are to investigate carmaker Renault over suspected cheating in emissions tests on high-polluting diesel engines. The company's shares were trading 2.4 percent lower around 11.00GMT on Friday following the announcement by Paris prosecutors, reports RFI.
Renault shares slumped four percent to 82.56 euros in the first reaction to the news, recovering slightly to 84.16 euros during the course of Friday morning.
Three examining magistrates have been assigned to look into suspicions that the company cheated on emission tests for diesel engines making the vehicles dangerous for human or animal health, according to sources at the prosecutors office.
The accusation arises from tests on motor vehicles sold in France ordered by the government following 2015's Dieselgate scandal, in which Germany's Volkswagen was accused of emission tests fraud.
Investigators raided Renault's headquarters and two technical centres in January 2016, setting off a fall in the value of Renault shares at the time.
Tests found several Renault vehicles over the limit for nitrous oxyde emissions, because the company's criteria were allegedly less demanding than its competitors' and France's fraud office handed the results of its inquiry to legal authorities in November.
Renault denies any cheating, saying it has "always respected French and European law" and insisting that "our vehicles are not fitted with software for fraud of pollution rules".