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Pressure grows on VW as bad news piles up

The dirty cloud hanging over Volkswagen continues to grow.

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Most of the cars with the carbon dioxide problem are equipped with an engine line known as the EA 288, of which there are 1.4-litre, 1.6-litre and 2-litre versions.

German automaker Volkswagen is in the grip of a worsening scandal.

Emissions tests are important criteria for taxing cars in many countries, especially in Europe. The devices turn on pollution controls when cars are undergoing tests and off when they are back on the road, allowing them to spew out harmful levels of nitrogen oxide.

On Monday, the Environmental Protection Agency announced new violations of vehicle emission standards, in which purposefully installed software was meant to cheat emissions testing.

In addition, Porsche has also stalled the sales of the diesel model of its 2014-2016 Cayenne SUV. Volkswagen denied the allegation.

German Transport Minister Alexander Dobrindt said earlier this week that customers should not have to cough up additional levies because VW deliberately understated the vehicles’ Carbon dioxide emissions.

The company told dealers in the United States and Canada on November 4 to stop selling cars from the 2013-2016 model years of VW and Audi with 3.0-liter engines.

This time, the emissions violations affect cars from the 2014 through the 2016 model years. EPA revealed that it has found similar defeat device on 3.0 diesel engines, which were being used in Volkswagen’s SUVs Touraeg, Porsche’s Cayenne, Audi’s Q5 and Q7, and Audi’s A6 and A8 luxury sedans.

October 15: Germany orders recall of all Volkswagen cars with the test-cheating software. So far, the scandal had only affected diesel engines. It’s also draining Volkswagen’s treasury. But that’s likely to rise as lawsuits mount. The shares have tumbled 23 percent since the scandal was revealed, and VW’s total value has fallen $26.3 billion to $57.21 billion. Volkswagen officials said the company did not use any defeat device with this engine.

Not much at this point. It could also prove to be a pivotal point for Indian auto manufacturers, as it may bring them under the scanner too. Due to these two reasons the owners of the affected cars would be able to claim compensation from Volkswagen, as the product is less worthy than advertised.

The Volkswagen faces heavy recall and penalty costs worldwide in the biggest crises of the vehicle manufacturing giants history.

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EPA Enforcement and Compliance Assurance Assistant Administrator Cynthia Giles stated that Volkswagen failed its obligation for the second time to comply with the U.S. Clean Air Act, adding that all companies should play by the rules.

Pressure grows on Volkswagen as bad news piles up