Volkswagen Group has reportedly halted U.S. sales of vehicles with 3.0-liter TDI diesel engines, affecting models from the Audi, VW and Porsche brands.
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The latest revelations add a new dimension to a crisis that previously focused on the carmaker’s attempts to cheat on smog-causing nitrogen oxide emissions by installing deceptive software in 11 million diesel vehicles worldwide.
The USA government says Volkswagen cheated a second time on emissions tests, programming about 10,000 cars with larger diesel engines to emit fewer pollutants during testing than in real-world driving.
The stop-sale order affects 2014 through 2016 Cayenne diesels until further notice, Porsche Canada said in a statement. Company officials in the United States said the suspension would last at least until it completes its review of the EPA’s test results, and they stressed that the tactic doesn’t necessarily mean it believes that even more cars are likely to have the illegal software. “AECD software does not alter emissions levels, but it ensures after a cold start that the catalytic converters quickly reach their working temperature and emissions cleaning takes effect”, VW said. Volkswagen’s ordinary shares have tumbled 23 percent since the scandal was revealed, and the total market value of the company has fallen by 24.2 billion euros – the equivalent of $26.3 billion at current exchange rates – to 52.75 billion euros, a drop of 31 percent. Audi told its dealers to halt sales of new and used diesel versions of the A6, A7, A8 and A8L sedans as well as the Q5 and Q7 SUVs, spokesman Brad Stertz said in an interview.
The company said the carbon dioxide problem could cost it $2.2 billion, on top of the 6.7 billion euros it already had set aside to cover the costs of recalls. The engines also will go into a reduced power mode to avoid further damage.
On Wednesday, Moody’s Investors Service downgraded Volkswagen’s credit from A2 to A3, which is still investment grade.
Dobrindt also said VW is responsible for finding a solution where “customers face neither extra costs nor effort”.
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“In Moody’s view, these new developments pose additional risk to Volkswagen’s reputation, future sales and cash”, the ratings agency said. “Public trust is at stake here”, EC spokeswoman Lucia Caudet said.
