EPA says VW cheating software is on more six-cylinder diesel engines

Volkswagen’s use of emissions cheating devices on its larger 3.0 litre diesel engine cars extends back five years earlier than originally reported, USA regulators said on Friday (Nov 20), deepening the crisis at the German auto giant.

Volkswagen said the safety of the cars in question “is in no way compromised”, adding that it “will endeavor to clarify the further course of action as quickly as possible and ensure the correct Carbon dioxide classification for the vehicles affected” with the responsible authorities.

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. Bosch built key components in the diesel engine used in six Volkswagen models and one Audi model that the automaker has admitted to rigging to defeat emissions tests.

On the other hand, Volkswagen announced on Friday that it would lower its capital expenditure to $12.8 billion in the coming year as it struggles with its multi-billion dollar cost of its emission scandal.

Vehicles named in the latest EPA notice include the 2014 VW Touareg, the 2015 Porsche Cayenne, and the 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5.

Nevertheless, Mueller said the company “will in no case make savings at the expense of our future”, as he promised that the carmaker will allocate an extra €100 million in 2016 on the development of hybrid and electric engines.

It has already set aside 6.7 billion euros ($7.4 billion) to cover the costs of recalling those vehicles but experts say the total cost including fines could be much more.

VW made the disclosure on the day it was meeting with the agencies about how it plans to fix 482,000 four-cylinder diesel cars equipped with emissions-cheating software.

The EPA said Thursday it expects to get the same information Volkswagen is submitting to the California board and plans to evaluate the effectiveness of the company’s plan. We will strictly prioritize all planned investments….

The company plans to produce these SUVs in China.

A few analysts have long urged VW to reduce spending and become more efficient, with profit margins at its mass-market namesake brand lagging those at rivals.

They have suggested the emissions scandal could provide an opportunity for management to force through changes that otherwise might have been resisted by the company’s powerful trade unions, and ultimately boost VW shares.

It halted work on a design center in Germany and a paint shop in Mexico, postponing deeper reductions in the biggest investment budget in the auto industry.