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Volkswagen emissions scandal deepens as auto manufacturer admits it involves

Germany’s largest carmaker said Friday that around 85,000 of its 3.0-liter V-6 diesel cars and SUVs needed software upgrades to bring them into compliance with environmental protection standards.

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Reuters reports that VW admitted all 3.0-liter diesel V6 engines-found in various VW, Porsche and Audi models-on 2009 to 2016 model year cars also contain software to circumvent emissions laws during testing, despite the initial denial made at the beginning of this month.

Just three weeks ago the EPA had issued a Notice of Violation (NOV) that named the A6 Quattro, A7 Quattro, A8 and A8L sedans, the Q5 crossover as well as the Porsche Cayenne Diesel and the Volkswagen Touareg as possessing defeat devices, believed to be similar to those used in the EA 189 TDI engine in a number of previously-named Volkswagen models.

EPA said it and the California state environmental agency, also involved in the probe, would further investigate, heaping more pressure on embattled VW.

Volkswagen has denied that the software allows the cars to cheat on emissions tests.

VW said it was putting the construction of the planned new design centre in Wolfsburg on hold, saving around €100m.

An EPA spokesperson confirmed that officials from VW and Audi met with agency officials Thursday and will do so again on Friday.

Volkswagen is cutting back on its investment plans next year as it continues to grapple with the cost of its emissions scandal. “We anticipate that there will be discussion of VW’s draft remedy and recall proposal”, said the spokesperson.

The figure is around €1bn less than the budget for the previous year. That will reduce overall capital expenditure to 12 billion euros in 2016.

VW’s preference shares, down about a third since the crisis broke, were up 1.5 percent to 107.40 euros at 1355 GMT (8.55 a.m. ET).

In the model range, the successor to the high-end Phaeton saloon, an electric model, is being delayed.

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Earlier on Friday, the European Commission gave VW until the end of the year to provide information on its overstatement of fuel efficiency in a few vehicles.

UPDATE 1-VW emissions issue extends to additional 75000 vehicles