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Cheating software ‘not corporate decision’: Volkswagen

CEO Michael Horn appeared before the House Energy and Commerce Committee’s Oversight and Investigations Subcommittee, where he told members that the company became aware of “possible emissions noncompliance” issues in the spring of 2014.

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The local brands announced the move after Volkswagen admitted earlier this week that Australian diesel vehicles were carrying software devices that tampered with the car’s emissions controls.

He said the first he knew of the problem was previous year when a West Virginia University investigation showed emission irregularities.

US and California regulators are investigating whether a second device created to foil emissions regulations has been installed in a few Volkswagen models, according to the New York Times.

“And I had no indication whatsoever that a defeat device could have been in our cars”.

Both companies offered dedicated phone numbers for owners concerned by the recall (Audi 1800 50 2834; VW and Skoda 1800 504 076).

Underlining the uphill task to winning back confidence, Congressman Peter Welch said: “VW is the Lance Armstrong of the auto industry” – a reference to the USA cyclist who had to be stripped of seven consecutive Tour de France titles after he was caught doping.

Meanwhile, while the United States lawmakers proved they were unsatisfied with the explanation provided, they also slammed the Environmental Protection Agency and its official called to testify after Horn for not uncovering the ploy earlier.

Societe Generale recently estimated the emissions scandal could end up costing Volkswagen almost $36 billion over the next two years as it contends with expenses including recall costs, vehicle buybacks, regulatory fines and class-action settlements.

The oldest cars, 325,000 vehicles grouped as Generation 1, would require major changes including the installation of new hardware.

Saying he “did not think that something like this was possible at the Volkswagen Group”, Horn admitted the automaker has “broken the trust of our customers, dealerships, and employees, as well as the public and regulators”.

Volkswagen has suspended more than 10 senior managers, including three top engineers, as part of an internal investigation.

A Volkswagen spokesman in the US said he didn’t know what the device did, but the company said that such devices sense engine performance, road speed “and any other parameter for activating, modulating, delaying or deactivating” emissions controls.

Mr Horn, who insisted the vehicles are safe to drive, said compliance processes and standards within VW will be examined so this can not happen again.

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At one point, Mr Horn himself said he found it hard to believe.

Volkswagen 20TDI