Volkswagen deleted documents and obstructed justice after the U.S. Environmental Protection accused the company of cheating on emissions tests, a former employee alleges in a lawsuit.
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Volkswagen said it lost $6.2 billion a year ago, compared with a profit of $2.8 billion in 2014.
Elsewhere, Peugeot Citroen offices in France were raided and items seized in relation to pollutants – with the company insisting it complied with all regulations.
Sascha Gommel, a Frankfurt-based analyst with Commerzbank, said in an investors note today: “The investigation may be procedural”.
According to Automotive News, it was said that after stringent investigations, only Volkswagen-owned vehicle brands were found to be equipped with illegal defeat devices, while other manufacturers were believed to be to be taking advantage of a legal loophole in the system. Volkswagen has been battling since then to appease regulators and regain customer trust after ultimately admitting to rigging the exhaust systems of 11 million diesel-powered cars worldwide.
However, seven months after the emissions scandal started, the company had not made in clarifying statement as to who is responsible for what took place and if any top managers had been involved.
German automaker Volkswagen has agreed to fix or buy back almost half a million diesel cars sold in the USA but fitted with illegal emissions software.
Mueller said as he released the headline earnings numbers that the company remains “fundamentally healthy” and that he is “convinced that Volkswagen has what it takes to overcome its challenges”. Volkswagen has two months to finalize a US agreement on fixing or buying back tainted cars there and still faces fines and a criminal investigation.
It’s also raised questions over the practices of others.
Separately, Italian automaker FIAT is being investigated following a tip from parts supplier Bosch about possible emissions irregularities, he said. A disclosure would “significantly impair Volkswagen’s cooperation with the Department of Justice and weaken Volkswagen’s position in any remaining proceedings”, the company said in a statement. Earlier this year, the California Air Resources Board rejected the recall plan submitted by Volkswagen for 2-litre diesel cars sold in the state between 2009 and 2015. This amount was set aside for recalls and repairs of vehicles that were affected by the scandal. The company previously said it would need 6.7 billion euros to cope with the crisis. “Brands are resilient, and research shows that the stronger the brand, the more likely the bounce back even in light of severe transgressions”.
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-Ruth Bender and Ilka Kopplin contributed to this article.
