VW made several defeat devices to cheat tests
Volkswagen considers cutting temporary workers
BERLIN/LOS ANGELES/DETROIT: Volkswagen made several versions of its “defeat device” software to rig diesel emissions tests, three people familiar with the matter told Reuters, potentially suggesting a complex deception by the German carmaker.
During seven years of self-confessed cheating, Volkswagen altered its illegal software for four engine types, said the sources, who include a VW manager with knowledge of the matter and a US official close to an investigation into the company. Spokespersons for VW in Europe and the United States declined to comment on whether it developed multiple defeat devices, citing ongoing investigations by the company and authorities in both regions.
Asked about the number of people who might have known about the cheating, a spokesman at company headquarters in Wolfsburg, Germany, said: “We are working intensely to investigate who knew what and when, but it’s far too early to tell.”
Some industry experts and analysts said several versions of the defeat device raised the possibility that a range of employees were involved. Software technicians would have needed regular funding and knowledge of engine programmes, they said. The number of people involved is a key issue for investors because it could affect the size of potential fines and the extent of management change at the company, said Arndt Ellinghorst, an analyst at banking advisory firm Evercore ISI.
Brandon Garrett, a corporate crime expert at the University of Virginia School of Law, said federal prosecution guidelines would call for the US Justice Department to seek tougher penalties if numerous senior executives were found to have been involved in the cheating. “The more higher-ups that are involved, the more the company is considered blameworthy and deserving of more serious punishment,” said Garrett.
VW, Europe’s biggest carmaker, has been criticized by some lawmakers and analysts for blaming a small number of individuals for the banned software installed in up to 11 million vehicles worldwide, even while investigations continue. Its US chief, Michael Horn, told US lawmakers earlier this month that he believed “a couple of software engineers” were responsible, while a letter dated Oct. 8 from VW to the European Parliament blamed “the misconduct of a few people.”
MANY CHANGES
VW admitted publicly on Sept. 18 to using software that could tell when a diesel vehicle was being tested and temporarily lower its toxic emissions to pass US regulations. The scandal has wiped around a quarter off its stock market value and forced out its long-time chief executive. When it started using defeat device software in 2008, VW installed it with the EA189 diesel engine. The software was subsequently added to the newer EA288 engine.
“VW would have had to reconfigure the software for each generation of engines,” said the US official close to an ongoing investigation into VW. A US-based expert on diesel engines and testing said the defeat device software also had to be altered when VW changed the emissions control system in its engines.
In older diesel models, VW used so-called Lean NOx Traps designed to reduce toxic nitrogen oxides in engine exhaust. From around 2012, it introduced a more sophisticated and expensive system called Selective Catalytic Reduction. VW’s Horn told US lawmakers on Oct 8 that different software was developed for Europe as well. “Since the standards are different, my understanding is that the defeat devices in those (European) cars are as well,” he said, without elaborating.
Horn added VW was withdrawing its application for regulatory certification of 2016 diesel models because it contained another software feature that had not been disclosed as required by the authorities.
Workforce reduction
Volkswagen is considering a reduction in temporary workers as part of efforts to offset the cost of the emissions scandal, the car maker’s works council said yesterday.
A spokesman for the council, a grouping of labour representatives within the company, said it would support efforts to secure temporary jobs but was aware the company’s board was discussing “different scenarios”. Volkswagen said in a statement that the outlook for its sales and employment levels were unpredictable, having on Friday reported lower September deliveries for its core autos division and the 12-brand group as a whole.
“If employment declines temporarily, shortened working hours will be a reasonable option,” VW said, adding that the executive board was doing everything it could to secure jobs. Reeling from the scandal over its rigging of diesel emissions, Volkswagen has said it will cut investment plans at its biggest division by 1 billion euros ($1.1 billion) a year. Some analysts have said the scandal could cost Volkswagen as much as 35 billion euros ($40 billion) to cover vehicle refits, regulatory fines and lawsuits. — Reuters