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German VC supports Volkswagen, urges it to come clear on emission scam

Volkswagen said it had handed over a “comprehensive” range of documents to public prosecutors who had searched premises at the carmaker’s headquarters in Wolfsburg and elsewhere on Thursday.

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Investigators searched the offices for “documents and data carriers that can provide information on the exact procedure of those involved in the manipulation of the exhaust emissions of diesel vehicles”, Xinhua quoted the prosecution office as saying in a statement.

Sites raided “include private apartments, and it is important to guarantee the privacy of these people”, she said. “This serves a prompt and thorough clearing-up, in which Volkswagen has great interest”.

Volkswagen finally admitted to USA regulators in September this year that hidden software installed in certain diesel vehicles “could recognize whether a vehicle was being operated in a test laboratory or on the road”, Horn said.

It added that “without the cheating software, the affected cars would not have been authorised under the Euro 5 emissions regulation”.

Calling the company’s admission “deeply troubling”, Horn said, “We have broken the trust of our customers, dealerships, and employees, as well as the public and regulators”.

The company, controlled by the Piech-Porsche clan, is not drawing on outside restructuring experts to help with its plans for a new company structure, one source close to the board said.

Economy Minister Sigmar Gabriel on Thursday urged Volkswagen to be pro-active in addressing its problems, but also said critics should not overstep the mark.

UBS analysts estimate Volkswagen could face a bill of around 35 billion euros ($40 billion) to refit cars, pay regulatory fines and settle lawsuits, though they also say this is more than factored into the stock price after its plunge.

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The software in question, known as a “defeat device”, is capable of turning on pollution controls for lab tests and shutting them off during real-world driving. On Wednesday, Transport Minister Alexander Dobrindt said the automaker said in reply to German authorities’ demand for a timetable that there would be a recall for vehicles with 2-liter, 1.6-liter and 1.2-liter engines.

Europe German regulators now canvassing VW’s diesel fix strategy image