And the news gets worse — Volkswagen inquiry reveals 800,000 more cars “fixed” to cheat

POSTED BY Nigel Andretti ON 04 November 2015

IN another damning admission, Volkswagen said on Tuesday it has found data “inconsistencies” on carbon dioxide emissions for 800,000 more cars — and it may cost the company another €2 billion (RM9.3bn) in economic risks from the newly disclosed issue, which mostly affects small diesel engines and one gasoline one.

Already enwebbed in an emissions cheating scandal that was brought to light in the US in September, this spells more heavy weather in the offing for Europe’s biggest automaker.

Volkwagen’s Tuesday statement is unrelated to the weekend’s revelations that the US Environmental Protection Agency has served Volkswagen a new show cause notice having found that larger diesel engines mostly used in Porsche and Audi sports utility vehicles were designed to cheat emissions tests.

VW has so far denied allegations regarding the larger 3.0 litre diesel engines made by the EPA, saying no software had been installed to “alter emissions’ characteristics in a forbidden manner” on the larger engines.

The carmaker said it would immediately start talking to “responsible authorities” about what to do about its latest findings.

“From the very start I have pushed hard for the relentless and comprehensive clarification of events,” Volkswagen chief executive Matthias Mueller (below) said in a statement.

“We will stop at nothing and nobody. This is a painful process but it is our only alternative.”


Volkswagen’s Supervisory Board said in a statement it was deeply concerned by the discovery of irregularities found when determining CO2 levels for the type approval of Volkswagen Group vehicles.

“These irregularities came to light during the clarification process which, as announced, is being relentlessly and comprehensively pursued.

“The Supervisory Board and the special committee set up for the purpose of clarification will meet in the very near future to consult on further measures and consequences…. (and) will continue to ensure swift and meticulous clarification.”

Europe’s largest carmaker had previously admitted to installing cheat software on up to 11 million vehicles worldwide with 2.0 litre diesel engines.

But the latest allegations from US regulators and the automaker itself suggest that both larger and smaller motors and even non-diesel ones may have deceived regulators.

The biggest business crisis in VW’s 78-year history has wiped as much as a third off its stock market value.

“Volkswagen has done a disservice to German industry,” Ulrich Grillo, the head of the Federation of German industries, told a conference on Tuesday, adding the firm had an obligation to the whole industry to clear up the scandal quickly.

The company took a €6.7b hit in third-quarter results to cover initial costs related to the scandal. Some analysts have said the final bill could reach as much as €35b in regulatory fines, lawsuits and vehicle refits.

Audi said on Tuesday it had not installed defeat devices in its 3 litre V6 diesel engines and is aiming to meet with California regulators in the next week to explain its position as well as how the software works.

Rival German carmaker BMW reiterated on Tuesday it had not manipulated emissions tests, as it posted a surprise rise in third-quarter operating profit.


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