Shares in European carmakers skidded yesterday after French authorities raided Renault factories and a lawsuit accused Fiat of inflating its US sales figures. 
Overall, Asian and European exchanges faced a fierce selloff on intensifying concerns over the darkening world outlook and low oil prices. 
Across Europe, London’s FTSE 100 fell 0.7% at 5,918.23 points; Frankfurt’s DAX 30 was down 1.7% at 9,7794.20 and Paris’ CAC 40 dropped 1.8% at 4,312.89. The EURO STOXX 50 slid 1.6% at 3,024.
“Numerous red alerts across China markets and a plunge in automotive stocks weighed on European stock markets on Thursday while the ongoing volatile downturn in oil prices swung from negative to positive catalyst throughout the day,” said analyst Jasper Lawler at CMC Markets UK. 
Shares in Renault plunged over 20% at one point after unions revealed French anti-fraud agents had raided several of its facilities. 
Renault confirmed the raids, but said they were aimed at confirming independent tests ordered by the French government. The automaker said those tests had not found any software to cheat pollution tests that Volkswagen has admitted installing on over 11mn diesel vehicles. 
French Environment Minister Segolene Royal later said Renault diesel engines had been found to exceed emissions limits, but said no cheating software had been found in the cars. 
Renault shares ended the day down nearly 10.3%, with the Paris exchange’s main CAC 40 index closing 1.8% lower. 
Shares in rival French carmaker Peugeot Citroen, which said it had not been raided, fell 5%. 
Volkswagen, which faces tens of billions of dollars in possible fines in the US alone over the pollution test cheating software, saw its shares 3.7%. 
BMW shares fell 3.4% and shares in Mercedes maker Daimler dropped 3.6%, while the Frankfurt exchange’s DAX 30 index closed 1.7% lower. 
Meanwhile shares in Fiat Chrysler Automobiles tumbled 7.9% in Milan and were down 5.5% in midday trading in New York after two US dealerships filed a lawsuit accusing the carmaker of inflating sales by offering incentives to dealers to report fictitious sales that are later cancelled. 
Fiat Chrysler said it had not yet received the lawsuit, but that it “believes that the claim is without merit”. 
Most Asian markets sank yesterday, bearing the brunt after oil prices tumbled this week to 12-year lows below $30 a barrel. 
Oversupply and demand fears linked to China’s economic slowdown have sent shockwaves across trading floors, with energy sector shares particularly exposed because they eat into profits and revenues. 
Japan’s Nikkei dived 2.7%, Sydney shed 1.6% and Hong Kong lost 0.6%, while Shanghai ended 2.0% higher on bargain hunting. Page 11