Volkswagen to fix deceptive engine software in October

By Money Times

Sep 30, 2015 09:58 PM EDT

The leading global auto major Volkswagen, which is reeling under pressure owing to emission tests rigging scandal, has assured that it would replace the deceptive engine software that manipulates results from emission tests. It's estimated that about 11million vehicles sold across the world have been fitted with manipulative engine software.

The German automobile company will start informing the owners of 11mn vehicles. It's found that these vehicles emit harmful pollutants 40 times higher than the US environment standards. However, Volkswagen didn't elaborate on the exact time of completion of the process or any compensation to vehicle owners. Volkswagen will submit a plan on technical solutions to regulators and environmental authorities for approval in October.

Wolfsburg-headquartered Volkswagen's new CEO Matthias Müller said a project team has begun working on an action plan and will inform the customers about refitting the vehicles. The scandal of manipulative software related to emission test results came to light on 18 September, when Environmental Protection Agency made it public after researchers at the International Council on clean transportation and West Virginia University discovered the violation of environmental standards.

The German automaker has installed engine software in its diesel vehicles that gives manipulative results during emission test conforming that these vehicles are compliant to environment regulations. So far, it's not clear that what type of solution to fix the problem or nature process, Volkswagen will take up. 

It's also not clear that the Volkswagen's new process will have to be approved by the US regulatory or is it subject to the approval of every regulatory authority of every nation, where ever Volkswagen vehicles were sold. Experts say that the process is complicated and it's not clear that how the correction will affect the fuel economy and performance of vehicles.

Volkswagen has prepared a plan of action to refit the vehicles affected by deceptive software. German automaker's new Chief Executive Müller said that a project team has been formed to implement a comprehensive action plan on refitting vehicles. 

Volkswagen has also decided to inform customers about the plan on refitting of vehicles through its website. Volkswagen will submit its technical solutions to regulators and environmental authorities for approval in October. 

It's estimated that about 482,000 diesel vehicles with deceptive software in the US alone. Volkswagen said that over 11mn vehicles fitted with such engine software have been sold in different countries. It will refit all the vehicles once it gets approval for its technical solutions plan. 

Volkswagen's Spanish subsidiary SEAT said that its 7000,000 vehicles with EA 189 diesel engines, which have been fitted with deceptive software. SEAT is in the process of identifying such vehicles sold in country wise. 

According to the rough estimates, about 5mn VW brand cars, 2.1mn Audis and 1.2mn Skodas have been fitted with deceptive engine software. The latest scandal had forced the CEO Martin Winterkorn to resign and it attracted several lawsuits and government investigations against Volkswagen diesel vehicles. 

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