VW said on Friday it could not release preliminary findings from an investigation it commissioned from US law firm Jones Day until it had reached an agreement with the DoJ.
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The suit, followed by similar ones, alleges Mercedes-Benz clean-diesel models contain a device that causes the vehicles to violate United States emissions standards when run at cooler temperatures, making them less environmentally friendly than advertised.
“Volkswagen intends to compensate its customers fully and to remediate any impact on the environment from excess diesel emissions”, the company said.
News of the charge comes a day after the auto maker took a major step toward resolving the scandal, agreeing to offer US owners of almost 500,000 vehicles a blend of auto buybacks, repairs and compensation.
“The investigation may be procedural, following the class-action suits filed against Daimler about their diesel technology not working properly”, said Sascha Gommel, a Frankfurt-based analyst with Commerzbank AG.
The revelation last September from US environmental authorities that the company had been cheating on emissions test rocked one of the most venerable brand names in the auto industry and cost it its chief executive as well as a host of goodwill.
Volkswagen said it regretted the decision but that a disclosure now would “significantly impair Volkswagen’s co-operation with the US Department of Justice and weaken Volkswagen’s position in any remaining proceedings”.
In 2015, the USA accounted for about 28% of the company’s €149.47 billion revenue. The recalls include Mercedes and Opel, as well as Volkswagen and its subsidiaries Audi and Porsche. But if improprieties surrounding Daimler’s diesel emissions are found, the company would not face the same drama that VW Group is facing.
Dobrindt said none of the newly scrutinized models were found to have rigged engine control software devices of the kind used by Volkswagen, but that they displayed elevated levels of nitrogen oxide in both laboratory and real-world tests. The investigation will centre around Daimler’s testing of diesel engines.
Investors were also disappointed by a sharp drop in profits in the first quarter, even if Daimler insisted it was sticking to its full-year earnings target for 2016.
Volkswagen’s 2015 results had originally been scheduled for March 10 but was postponed to give the company time to assess the fallout of the scandal.
Mitsubishi said it would halt production and sales of the affected models – mini-cars sold in Japan including many made for rival Nissan – and warned that the number would likely rise, as it looks to vehicles sold overseas.
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Higher costs outweighed record sales in China. VW is on the hook for up to $20 billion in environmental fines in the US alone, although it’s likely the company would negotiate a lower figure as part of any settlement.A source told AP that vehicle owners would share in more than $1 billion in compensation that would vary based on the car’s age and miles.
