Vancouver Sun

VW hit with new cheating allegation

Sister company Audi investigat­ed for using software to defeat C02 tests

- CHRISTOPH RAUWALD KARIN MATUSSEK

Volkswagen AG’s efforts to emerge from the diesel-emissions scandal were dealt a double blow after German prosecutor­s extended their probe to chairman Hans Dieter Poetsch and a newspaper reported Audi installed additional cheating software in some of its cars.

Europe’s largest automaker has struggled to extricate itself from the crisis, which erupted in September 2015 after Volkswagen admitted to rigging about 11 million cars worldwide to cheat on emissions tests. Poetsch, who was chief financial officer when U.S. authoritie­s were investigat­ing, was installed as chairman in the aftermath of the revelation­s to help stabilize the company. Audi, which developed some of the engines involved in the scandal, is the group’s biggest profit contributo­r and is critical to Volkswagen’s recovery plan.

In an investigat­ion into allegation­s of market manipulati­on, German prosecutor­s named Poetsch as a third suspect after interviewi­ng more witnesses and examining “other sources,” Klaus Ziehe, spokesman for the Braunschwe­ig prosecutor­s’ office, said Monday. “Initial evidence” suggests that Poetsch may have been involved, he said.

In the U.S., environmen­tal authoritie­s in California discovered that certain Audi gasoline and diesel models include software that direct the engines to burn less fuel and emit less carbon dioxide on test stands than on the roads, Germany’s Bild newspaper reported on Sunday. The findings made over the summer apply to automatict­ransmissio­n cars including the Audi A6 and A8 sedans and the Q5 sport utility vehicle, the newspaper said. Audi had stopped installing the defeat devices in new vehicles by that time, Bild said.

When the steering wheel of those vehicles was turned more than 15 degrees, as if backing out of a parking space, the emissions-limiting software disengaged, Bild reported. An Audi spokesman declined to comment on the report, citing ongoing negotiatio­ns with authoritie­s.

Volkswagen says that management “fulfilled its disclosure obligation under German capital markets law.” Meanwhile, Wolfgang Porsche, head of the clan that controls the majority of Volkswagen’s voting shares, said the families “absolutely stand behind Mr. Poetsch.”

 ?? KRISZTIAN BOCSI/BLOOMBERG/FILES ?? Volkswagen AG chairman Hans Dieter Poetsch and two other current and former executives are under investigat­ion by prosecutor­s in Germany for alleged market manipulati­on.
KRISZTIAN BOCSI/BLOOMBERG/FILES Volkswagen AG chairman Hans Dieter Poetsch and two other current and former executives are under investigat­ion by prosecutor­s in Germany for alleged market manipulati­on.

Newspapers in English

Newspapers from Canada