Volkswagen US Sales Slump By 25% After Scandal

German auto major Volkswagen said it will recall 3.23 lakh vehicles in India after a government-ordered probe found that the company’s cars fitted with EA 189 diesel engine used a “defeat device” to cheat emission tests.

The Group has presented specific technical measures regarding the EA 189 engines with a displacement of 1.6 and 2.0 litres to the Federal Motor Transport Authority, which have been ratified by the latter after extensive examination.

In India, the Automotive Research Association of India (ARAI) found a significant variation in the emission level in on-road vehicles compared to laboratory measurements.

“Volkswagen is working tirelessly on an approved remedy for the affected TDI vehicles”, Mark McNabb, chief operating officer, Volkswagen of America, said in a statement. Shares in automaker Volkswagen are sliding after USA environmental officials said the company equipped more models than previously thought with software that let the cars cheat on diesel emissions tests.

The Volkswagen Group, the company that sells the VW, Audi and Porsche brands, reported a 0.4% increase for the Audi brand.

“Depending upon the outcome of the disclosure and test findings, possible penal/administrative action and/or recall of vehicles, as the case may be, shall be taken in accordance with applicable national laws”, said the minister.

It added, “The existing installed software does not affect the handling, technical safety or “roadworthiness” of the cars”.

Before issuing the notice, Chairperson questioned the petitioner how the tribunal could be seen to have jurisdiction to stop the sale of the vehicles allegedly violating emission norms. The ARAI has been authorised by the central government to conduct an investigation into the matter. ARAI had submitted the preliminary report to the government on October 28.

That number is likely to rise as both VW and Skoda have continued to sell cars in India with the software in question.

“People have told me a leading reason they bought their vehicles is because they were supposed to be environmentally friendly, meet the European emission standards and were supposed to be a new clean green diesel technology”.

Several countries around the world and Europe had started independent inquiries to find out whether the fudging practice also took place there.