Now, the regulatory agency in its violation notices to Volkswagen claimed that an additional 10,000 luxury cars and SUVs powered by a 3L diesel engine also feature the alleged cheat device, purportedly meant to beat emission testing processes.
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VW is going to explain its stance on AECDs to representatives of the EPA at a meeting on Thursday as it hopes the regulator will allow its use of the software system, two sources at the carmaker said, adding that Audi is planning to meet separately with the regulator next week.
The widening scandal prompted Moody’s Investors Service to cut Wednesday the rating on the Volkswagen’s debt.
The company has said it will cost at least 8.7 billion euros ($9.5 billion) to recall the diesel vehicles, and deal with the consequences of understating carbon dioxide emissions.
Volkswagen admitted installing this software in eleven million vehicles around the world this September and triggered a huge regulatory crisis that involved a number of government investigations and lawsuits and has the potential of costing them billions of dollars. 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.
Their parent company has even stopped the sale of the 2014-16 Porsche Cayenne and the 3 liter diesel 2015-16 Volkswagen Touareg. The effects of the scandal have so far barely been reflected in VW sales figures – although it was the only German carmaker to report a decline in auto registrations in Germany in October.
Giles said the EPA determined that VW had designed and installed software that would enable the 3.0-liter diesel engine to run on “normal mode” and something called “temperature conditioning” – the cheating mode.
The admission about fuel consumption is the first that threatens to make a serious dent in VW’s sales since the scandal erupted as it could deter cost-conscious consumers, analysts said.
“Public trust is at stake here”, spokeswoman Lucia Caudet told reporters on Wednesday. The company has hired law firm Jones Day to investigate.
The Commission has enforcement powers to ensure that manufacturers respect their obligations in terms of carbon dioxide emissions, including the possibility of imposing fines.
Of the 800,000 vehicles found to have excessive Carbon dioxide emissions, 98,000 had gasoline engines, Dobrindt said.
VW CEO Matthias Mueller has promised the company will “relentlessly and completely clarify the matter”.
In an emailed statement, Bernd Osterloh said the company broke rules requiring it to consult with the works council before taking any such step.
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Mueller has said that upper management would not have involved itself in the details of software development and has pointed to “a few” employees who altered the software code.
