Audi to update diesel-engine software

However, in a positive development for Volkswagen, Mueller said it would be less complicated and less costly than feared to bring cars in Europe with illegal software into compliance with emissions regulations.

Audi had initially denied that the 3.0-liter diesel engines, offered in a number of models in North America, contained any kind of software that acted as a “defeat device”, but had nevertheless halted sales of new and used models that feature that engine.

Volkswagen AG’s diesel-emissions scandal just got bigger.

Audi officials were quoted as saying that the automaker did not inform the EPA about the additional emissions-editing devices, and that the extra equipment can indeed be filed under the defeat device category. VW said it is cooperating with regulators.

USA regulators continue to tell owners of all the affected cars they are safe to drive, even as they emit nitrogen oxide, a contributor to smog and respiratory problems, in amounts that exceed EPA standards – up to nine times above accepted levels in the six-cylinder engines and up to 40 times in the four-cylinders.

Meanwhile, the U.S. EPA and California Air Resources Board agreed to let the automaker seek approval for a revised version of software in 85,000 diesel engines targeted in the latest probe by US regulators, Audi said.

The defeat device software would activate full emissions controls only when it was being tested, and would deactivate when the auto was being driven normally. The devices helped it meet stringent emission tests in the US.

The issue with the 3.0-liter engines is not the same as the one afflicting the 2.0-liter engines, Audi said in a statement.

The company expects to save money by delaying some projects and put the construction of a new design center in Wolfsburg, Germany, on hold, saving up to EUR100 million.

It may also scrap plans for a paint factory in Mexico where it produces Beetle, Jetta and Golf models.

The recall process is now viable “technically, financially and in terms of manpower”, according to chief executive Matthias Mueller.

Volkswagen earlier promised to slash its overall costs by at least EUR10 billion a year by 2018.

VW has reportedly set aside €6,7 billion (R100,2 billion) to cover the costs of recalling the vehicles and a further €2 billion (R29,9 billion) for compensation payouts. “Until this notice, all of our information was that the Porsche Cayenne Diesel is fully compliant”.

In a separate announcement Friday, the company said it was slashing spending on new products, factories and initiatives by $1.1 billion a year.

Müller, appointed in the wake of the scandal, said he plans to present an interim report on the status of the investigation in mid-December as the final results will still take several months. Volkswagen declined to comment.