Consequently, other stocks in the auto sector were crushed by the news, with shares in Porsche (owned by VW) sinking 17.2 percent, France's Renault down 3.2 percent, and Daimler pared losses throughout trade, closing down 1.4 percent.
Dialog Semiconductor also saw its shares slump 18.9 percent after the microchips maker agreed to buy U.S. peer, Atmel for $4.6 billion.
In the green, oil prices were posting gains, after data revealed U.S. drilling had slowed. Brent crude was trading up at $48.36 per barrel, while U.S. light crude was at $46.09. This gave oil stocks a boost, with SBM Offshore, Neste and Royal Dutch Shell all finishing in positive territory.