German car giant Volkswagen has admitted cheating emissions tests in the US. In this video, IBTimes UK explains how it did so and what will happen to the affected cars and the company now the scandal has been exposed.

All new vehicles must pass emissions tests before going on sale to the public. The US Environmental Protection Agency (EPA) discovered a device in diesel engines that recognises when it is being tested. The device communicates with the car's computer to adjust how the engine is running, reducing emissions to legal levels. A recall of 11 million VW vehicles fitted with the device could now take place.

Volkswagen has apologised profusely for betraying the trust of its consumers and announced an investigation. Speaking about the incident, VW America boss Michael Horn admitted "We've totally screwed up".

The company could now be hit by fines totalling $18bn (£11.7bn) and possible criminal prosecutions. VW's share price has tumbled over 20% to a four-year low since the emissions scandal news first broke. The US is now investigating other car makers.

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