please scroll down for Automotive World’s coverage of the first days of the VW crisis.
Key events:
7 October 2015: Hans Dieter Poetsch confirmed as VW Chairman
30 September 2015: Oliver Blume confirmed as Porsche’s new Chairman of the Executive Board
29 September 2015: Skoda has confirmed that 1.2 million vehicles are affected, SEAT has confirmed that 700,000 of its cars are affected and VW has confirmed that 1.8 million LCVs use engines equipped with the offending software; this adds to the 2.1 million affected Audi cars and 5 million VW brand vehicles. This accounts for 10.8 million vehicles, just short of the 11 million vehicle estimate issued by VW Group on 22 September.
29 September 2015: VW has issued a statement regarding the company’s action plan to fix the affected engines. The statement says that customers driving vehicles with the affected Euro 5 engines of Type EA 189 will be informed that their vehicle is technically safe and driveable, but that it will shortly be possible to improve their vehicle’s emissions. The action plan calls for Volkswagen and the other affected VW Group brands to present a technical solution and strategy to the relevant authorities in October. In the coming weeks and months, customers will be duly informed, and each brand will create a national Internet page keeping their customers informed of progress.
28 September 2015: Prosecutors in Braunschweig, Germany, have opened preliminary proceedings against former Volkswagen Chief Executive Martin Winterkorn. In a press release, the prosecutors state that the case centres on “allegations of fraud in the sale of cars with manipulated emissions data.” The statement confirms that a charge has been raised against Volkswagen AG against persons unnamed. The prosecutors’ aim is to clarify accountability.
28 September 2015: Reuters reports that 2.1 million Audi cars worldwide were fitted with the ‘defeat device’ software. The affected engines are Euro 5 engines A1, A3, A4, A5, A6, TT, Q3 and Q5 fitted into the A1, A3, A4, A5, A6, TT, Q3 and Q5 models. The OEM again says Euro 6 engines are not affected. An Audi spokeperson has confirmed that this figure includes around 1.42 million Audi vehicles in Western Europe, 577,000 of which are in Germany. There are up to 13,000 in the US.
27 September 2015: German Sunday newspapers reported that VW had been warned as long ago as 2007 that engine software designed for in-house testing was not legal for official emissions tests. Frankfurter Allgemeine Sonntagszeitung reported – without official confirmation from VW – that engineers had warned VW in 2011; Bild am Sonntag reported that Bosch, which supplied the engine software for testing purposes, had written to VW in 2007 underlining that the software was not for official use.
25 September 2015:
- Herbert Diess, head of the VW brand, confirms that 5 million VW brand cars worldwide are equipped with the Type EA 189 engines using the defeat device software, and that Euro 6 engines are not affected. No mention is made of other brands within the VW Group, but the implication is that the remaining 6 million of the previously confirmed 11 million units are spread across other VW Group brands. No explanation is provided as to why Euro 6 engines are not affected.
- Matthias Müller appointed Chief Executive of the Volkswagen Group. The long-planned VW Group board of management meeting – which had originally been seen as the occasion at which former Chief Executive Martin Winterkorn would have his contract extended to 2018 – became the pivotal moment for the Volkswagen Group. From celebratory affair to crisis meeting to handle the ‘defeat device’ crisis, the board used the meeting to make key executive changes, announce changes to the company’s divisional structure, and issue a statement in response to the unfolding ‘defeat device’ crisis.
- The US Environmental Protection Agency (EPA) released a letter sent to vehicle manufacturers notifying them that the agency is adding to its confirmatory testing additional evaluations designed to look for potential defeat devices.
- Alexander Dobrindt, Germany’s transport minister, has indicated that cars – and now also light commercial vehicles – in Europe are also affected, including at least 2.8 million cars in Germany. This is understood to include the company’s 2.0-litre TDI and a 1.6-litre unit. Dobrindt has suggested the company’s 1.2-litre diesel engine is now also under investigation in Germany.
- Standard & Poor’s has placed its ‘A/A-1’ long- and short-term ratings on VW on CreditWatch with negative implications, warning that the placement reflects the risk that it could lower the long-term ratings by one or more notches.
- Daimler issued a statement categorically denying “any and all allegations of manipulation”. The statement, issued in response to allegations made by an organistion called Deutsche Umwelthilfe (DUH), says: “We categorically deny the accusation of manipulating emission tests regarding our vehicles. A defeat device, a function which illegitimately reduces emissions during testing, has never been and will never be used at Daimler. This holds true for both diesel and petrol engines. Our engines meet and adhere to every legal requirement.”
23 September: The VW Group’s steering committee met to discuss Winterkorn’s future; ultimately, the official decision was taken by Winterkorn himself. That afternoon, he announced his decision to resign as Chief Executive, leaving the company without clear leadership – in addition to losing its Chief Executive, the company is being steered by an acting Chairman.
22 September: The VW group issued a profit warning and announced a €6.5bn (US$7.3bn) provision to cover the costs of the recall and associated fall-out. The OEM also confirmed that in addition to the 500,000 vehicle recall in the US, there are 11 million diesel engines worldwide equipped with this software.
20 September: VW Group Chief Executive Martin Winterkorn was forced to issue a public and personal apology.
18 September: The US Environmental Protection Agency (EPA) issued a Notice of Violation (NOV) against Volkswagen AG, Audi AG and Volkswagen Group of America for the use of a so-called ‘defeat device’ in the Group’s Type EA 189 diesel engines which produced different emissions ratings under EPA test conditions than in real life applications. According to the EPA website: “The NOV alleges that four-cylinder Volkswagen and Audi diesel cars from model years 2009-2015 include software that circumvents EPA emissions standards for certain air pollutants. The software produced by Volkswagen is a “defeat device,” as defined by the Clean Air Act. California is separately issuing an In-Use Compliance letter to Volkswagen, and EPA and the California Air Resources Board have both initiated investigations based on Volkswagen’s alleged actions”. The engine identified in the EPA NOV is the VW Group’s Type EA 189 diesel engine. Affected diesel models in the US – around 482,000 vehicles – include the Jetta (model years 2009-2015), Beetle (2009-2015), Audi A3 (2009-2015), Golf (2009-2015) and Passat (2014-2015).
Follow these links to read Automotive World‘s coverage of the VW diesel ‘defeat device’ crisis:
COMMENT: VW crisis implies a whole new recall territory
BY ALAN BUNTING. VW will need to inform owners that NOx-reducing modifications will inevitably put up everyday running costs
Ratings dominos – Scania hit by VW cap
Scania is regarded as an integral part of the VW Group, and its credit ratings are capped by those on the parent company
VW appoints Matthias Müller as Chief Executive
Matthias Müller is the new Chairman of the Board of Management of the Volkswagen Group
Brands brace for ripple effect from VW diesel fiasco
VW’s diesel emissions cheat scandal threatens to inflict both financial and reputational damage on the Group’s many brands as well as its shareholders
COMMENT: Being a full line OEM has its benefits – until it doesn’t
BY OLIVER DIXON. VW’s passenger car transgressions could seriously impact its plans for a North American truck operation
COMMENT: Passat launch overshadowed by VW diesel crisis
BY MARTIN KAHL. The launch of the 2016 Passat will forever be associated with the words of VWoA’s Michael Horn: “We screwed up”
COMMENT: What VW needs now is strong corporate leadership
BY MARTIN KAHL. Martin Winterkorn’s resignation leaves VW without CEO or Chairman
VW crisis: Martin Winterkorn resigns
The diesel ‘defeat device’ scandal has resulted in Martin Winterkorn’s resignation
Nothing new about defeat devices
VW is not the first OEM to use – and be caught using – a ‘defeat device’ to circumvent EPA emissions testing. By Martin Kahl
COMMENT: ‘Cycle beating’ – we’ve been here before
BY ALAN BUNTING. In the 1990s, the practice of ‘cycle beating’ was prevalent in the heavy-duty diesel sector
Diesel disarray requires vigilant enforcement of air pollution laws, says ICCT
The EPA’s reaction to VW’s diesel defeat device could spark a change to test cycles. By Michael Nash
Suppliers brace for impact as VW diesel crisis unfolds
How components are integrated into complete vehicle systems is the responsibility of each automaker, says Bosch. By Freddie Holmes
COMMENT: From defeat device to profit warning
BY MARTIN KAHL. The VW defeat device revelations have the potential to create a major, multi-layered, global corporate scandal that could run for many months, if not years
Accusations of diesel test cheat need quick response from VW
US regulators confront VW with charges of cheating during diesel engine emissions tests. By Megan Lampinen
