Volkswagen to adopt new system for controlling diesel emissions

The company said it would switch to a selective catalytic reduction system to decrease emissions on its diesel engines in Europe and North America, where the scandal erupted last month.

Chief executive Dr Herbert Diess said: ‘We are very aware that we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency programme and in giving our product a range of new focus.

Revealing details of the car’s specification for the first time, Volkswagen says the auto will feature “a pure-electric drive with long-distance capability, connectivity and next-generation assistance systems”. The company has so far set aside 6.5 billion euros for repairs and to compensate customers, and has said that amount wont be enough.

Investors were not too pleased about the cutback in investment and VW shares were among the main losers on the Frankfurt stock exchange today, shedding 2.86 percent in a weaker market.

Governor Stephan Weil told Lower Saxony’s state legislature on Tuesday that “this confession should clearly have come a great deal earlier – another serious mistake”, news agency dpa reported.

The scandal affects 11million cars worldwide, including Volkswagen’s Audi and Skoda brands.

Weil sits on Volkswagen’s board of directors.

All automakers have been required to invest heavily in alternative fuel technologies to meet ever-increasing fuel efficiency and emissions standards, with Volkswagen’s investment of choice being diesel.

Tighter rules are being introduced that could hit the competitiveness of diesel vehicles. The company plans to install a high-performance exhaust system employing a urea solution in all European and USA diesel offerings.

After suffering a regulatory and public relations debacle over cheating emissions tests, Volkswagen announced a new strategy that will see it focus on hybrids and electric cars. It plans to make the new Phaeton “the flagship for the brand’s profile over the next decade”.

Although, adopting the new emissions technology will address coming models, VW intends to steer clear from diesel technology and pour more of its resources behind electric and plug-in hybrid cars in the near future. The current model’s gasoline and diesel versions, which will be axed, are assembled by hand at a glass-walled assembly facility in Dresden by technicians wearing white robes and at times white gloves.

Diesels account for slightly more than 20% of VW’s global sales. The carmaker presented German authorities with a plan last week for fixing affected cars in its home market.

The 2016 diesel models have as an auxiliary emissions control device, a piece of software that is legal if approved by regulators and can help improve the car’s performance in cold weather or going up hills.