VW: small group of engineers began working on cheat in 2005

Still recovering from an emissions cheating scandal, Volkswagen AG agreed to improve oversight of its engine-software department to prevent future manipulations, Reuters reported Thursday.

CEO Mueller, brought in to resolve the crisis, said VW was “currently doing everything it can to limit the effect the current situation has on its business performance”.

Despite the emissions scandal, orders for VW vehicles are up 3.5%.

Mueller, 62, has been in the driving seat since the end of September, and was drafted in to replace Martin Winterkorn in the wake of shock revelations that VW systematically installed emission-cheating software in some 11 million diesel engines worldwide.

The automaker revealed that its internal investigation uncovered weak processes, individual misconduct and a mind-set in some parts of the company “that tolerated breaches of rules”.

He said the future would be about more open discussions, closer cooperation, and a willingness to allow mistakes if they are understood as an opportunity to learn.

He said there are so far no indications that board members were directly involved, but said the company’s probe would be all encompassing: ‘This is not only about direct but overall responsibility’.

Poetsch confirmed the company had suspended nine managers for possible involvement in the scandal.

Poetsch said the external investigation by USA law firm Jones Day was making good progress but would need time to reach conclusions because the results will need to stand up in court.

The company was not considering the sale of any units to simplify the group structure or raise money, and was happy with having 12 brands.

Poetsch did not say if any VW models from before 2009 had the cheating software in the U.S. A spokeswoman for the U.S. Environmental Protection Agency would not immediately comment on whether any more model years are under investigation.

VW, too, launched its own internal and external inquiries to find the masterminds behind the scam and their accomplices.

Matthias Mueller said the scandals had so far not caused the ‘massive slump that some feared earlier, ‘ but recent sales figures have already suggested a declining appetite for VW cars across markets.

“Although the current situation is serious, this company will not be broken by it”. Executives also said they will be ready to answer more questions next month at the Detroit Auto Show.