Published: Sun, November 01, 2015
Economy | By Melissa Porter

Volkswagen emissions scandal may be worse than thought

Volkswagen emissions scandal may be worse than thought

 The 2.0 turbodiesel engine of a 2014 Volkswagen Passat passenger auto affected by the Volkswagen diesel emissions software scandal stands illuminated under coloured lights on October 6, 2015 in Berlin, Germany.

There is as yet no timetable for a recall. It previously admitted that the new engines are not equipped with the software that cheated on the US Environmental Protection Agency (EPA). The scandal caused Volkswagen's stock price to plummet and the company's CEO Martin Winterkorn was forced to resign. And the costs are mounting.

A thorough investigation has already been announced. Volkswagen also has promised to fix about 500,000 diesel cars in the United States. Presuming they manage to stay in business, VW will be forgiven when it resumes, or at least starts, selling cars as sporty, thrifty and legal their diesels pretended to be.

They were included in the original count of affected Volkswagen products issued by Environment Canada, which amounted to more than 100,000 cars. Those will all have to be fixed. It's said that the move will save the company hundreds of millions.

Kalafer is also worry about the morale of his staff, who depend on good sales to get bonuses.

The engines were configured in different ways depending on the vehicle, further complicating the task of bringing them into compliance. But post-'dieselgate', the world is checking up on all the VW diesels. Many owners had been loyal VW customers for years. Their loyalty is now up for grabs.

This is not your run-of-the-mill auto industry fiasco we are all familiar with. And remember, that's just in the United States.

This new information goes against the narrative which auto manufacturers have been happy to perpetuate: that cars are becoming increasingly efficient and more environmentally friendly. This is capable of potentially increasing the cost and disruption of a scandal affecting Europe's biggest carmaker.

VW can probably afford it and survive, especially if it can manage to spread the payments out over several years. So the company needs to find ways to cut back spending - and it's turning to its employees to make up some of that extra cash.

The representative said the file, which contained printouts and duplicates of documents most of which are available online, as well as in-house notes on legal questions and there was nothing much to worry it would not impact the ongoing investigation into the "defeat device" scandal.

Like this: