VW suspends diesel sales in Australia

VW employees arriving for work at the company’s huge plant in the northern German town on Friday hoped that a new chief executive could start to stabilize the company.

“AUDI AG has released a statement to inform existing customers that the company would be contacting them in the coming weeks and months with information about how their cars will be retrofitted”.

Even if a vehicle is affected it is “technically safe to drive and roadworthy before the correction has been carried out”, the site says.

Matthias Mueller vowed Tuesday that “we will overcome this crisis” but said it “would not happen without pain”.

Mueller warned all projects and investments would be put under review and there would be “massive cuts”.

The statement read: Audi Australia Pty Ltd, together with VOLKSWAGEN Group Australia (VGA) met with the relevant government authorities yesterday to advise them of its strategy to address concerns that have been raised around the world regarding the diesel emissions issue. To make matters worse, the scandal comes just as demand is slowing in China, where Volkswagen’s brands are heavily exposed.

That is my nine-word summary of Volkswagen’s use of advanced software to cheat USA diesel emissions tests. The solution will probably vary from regulator to regulator, meaning this week’s German plan won’t necessarily apply elsewhere, said the person.

A few days later, VW admitted the same “defeat device” that switched the pollution controls on and off was on 11 million cars worldwide.

“We need clarity on Europe”, Bernstein analyst Max Wurburton wrote in a research note this week. If recall costs, including scrapping cars, fines and other penalties, are limited to the US, “the damage can be contained”.

“There is no excuse whatsoever for the VW cheat”. However, one source close to the supervisory board told Reuters on Monday the carmaker’s internal inquiry had not found any evidence to accuse the top engineers of the manipulation.

“We are aware that a number of key trade buyers are viewing Volkswagen conservatively for the time being, although it is fair to say that there are also others who are less concerned and are essentially standing by the brand and its products”.

But a panel of US lawmakers will want answers when they question the company’s USA boss Michael Horn on Thursday. The next year, he was named management board member for the Volkswagen brand in charge of development.