United States regulators broaden Volkswagen diesel probe

VW made the disclosure on Thursday, a day before it submitted plans to the EPA to fix a much larger problem – emissions-cheating software on 482,000 four-cylinder diesel cars.

The fix for the 2-liter four-cylinder diesels in cars such as the Audi A3 and the VW Beetle, Golf, Jetta and Passat likely will include software changes and in a few models, complex and expensive modifications to the exhaust system.

The statement says the agencies will investigate and take appropriate action.

After a year-long investigation by the EPA and California, Volkswagen admitted in September that a number of its diesel-fueled vehicles had been programmed to cheat air pollution tests by emitting lower volumes of nitrogen oxides during tests than during regular driving.

In November, the EPA and the California Air Resources Board also accused VW of evading emissions in at least 10,000 Audi, Porsche and VW sport utility vehicles and cars with 3.0-liter V-6 diesel engines. Additional VW and Porsche models weren’t available Friday afternoon, but initially the EPA said it also was on the 2014 VW Touareg and 2015 Porsche Cayenne.

“The most unfortunate aspect of this whole situation for Volkswagen is they have to start the healing process and the repairing process for their brand, and you can’t do that while the scandal is still growing”, Kelley Blue Book analyst Karl Brauer said in an interview.

CARB and EPA plan another meeting with senior VW officials to discuss the issue in the first week of December.

Chief Executive Matthias Mueller said in a statement: “We are operating in uncertain and volatile times and are responding to this”.

In previous years, the company has published investment plans for several years ahead.

Volkswagen’s preference share price was up 1.4 percent at 107.30 euros, making it the strongest riser in Germany’s main stock index, which was 0.5 percent higher.

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

Stertz said the software is legal in Europe and it’s not the same as a device that enabled four-cylinder VW diesel engines to deliberately cheat on emissions tests.

In the model range, the successor to the high-end Phaeton saloon, an electric model, is being delayed. It named two new employee representatives to the supervisory board as well, to replace departing ones.