Germany to re-test Diesel, petrol Volkswagen cars amid emission scandal

News that the scandal had moved to Carbon dioxide emissions knocked a further 10 per cent off its share price on Wednesday.

The council maintained that it action came on the heels of a scandal that the auto manufacturer’s diesel vehicle engines were found to contain a software that can cheat pollution tests, making them seem cleaner than they actually are. That smaller engine is at the heart of revelations that VW had built a cheat into its popular small diesel in order to fake emissions rule compliance.

Shares in Volkswagen have taken a fresh battering after a massive pollution scandal engulfing the company widened to include petrol as well as diesel engines. The full EPA “Notice of Violation” can be read here.

In response to whether or not Porsche or Volkswagen offered the information about additional cars affected by the defeat device, Giles deep-rooted that the defeat devices were discovered through emission testing by the agency and by the Board of California Air Resources. If it turns out a defeat device was used in this case, too, this would hurt Audi’s brand reputation a lot.

It’s getting worse than ever for Volkswagen.

Nearly 11 million vehicles around the world – including Jetta, Beetle, Audi A3 and Golf from model years 2009-2015 and Passat of model years 2014 and 2015 – are fitted with this software. The automaker didn’t reveal how many cars in Europe were equipped with the software.

Irregularities were found when determining type approval Carbon dioxide levels.

In a related development, the Narendra Modi government said it had made a decision to issue a show-cause notice to Volkswagen India after tests showed a significant variation between on-road emission levels and readings thrown up during vehicle certification tests in the laboratory. But it signifies the emissions-cheating software’s goes beyond the mass-market, four-cylinder diesel vehicles caught up in the initial recalls, Reuters reports.

Separately, Volkswagen says it has dropped a shift a week at one engine factory and imposed a temporary hiring freeze at its financial services division.

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. “We need all the facts on the table”.

Separately, Porsche SE, the investment company which owns 32.4 percent of VW’s capital, said Tuesday’s revelations could have a “negative impact” on its own results, although it maintained its projections for 2015.

September 28: German prosecutors open an investigation to establish what role former CEO Winterkorn had in the scandal.