Volkswagen “clean diesel” scandal extends to 11 million vehicles worldwide!
Volkswagen “clean diesel” scandal extends to 11 million vehicles worldwide! Since 2009, Volkswagen had been installing some kind of software in 482,000 “clean diesel” vehicles sold in the US, so that the cars’ pollution controls only worked when being tested for emissions. The rest of the time, the vehicles could freely spew hazardous, smog-forming nitrogen oxides.
The automaker now says 11 million diesel vehicles (such as Jetta, Golf, Passat and Beetle) were equipped with the software that helped them cheat emissions tests worldwide. “Millions of people all over the world trust our brands, our cars and our technology. I am deeply sorry we have broken this trust,” said CEO Martin Winterkorn. “I would like to make a formal apology to our customers, to the authorities, and to the general public for this misconduct.” The above mentioned models with 2.0L TDI have been halted from selling for now.
To cover the necessary service measures and other efforts to win back the trust of their customers, Volkswagen plans to set aside a provision of some 6.5 billion EUR recognized in the profit and loss statement in the third quarter of the current fiscal year. Due to the ongoing investigations the amounts estimated may be subject to revaluation. But that amount is unlikely to help the automaker’s shares, which lost nearly a fifth of their value on Monday, and fell a further 5 percent Tuesday. Additionally they could face a fine of about $18 billion, or $37,500 per car! Here’s VW’s US head Michael Horn, who admitted the company had “totally screwed up” and vowed to make amends.