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VW admits emissions scandal was caused by systematic failures VW admits emissions scandal was caused by systematic failures
(about 2 hours later)
Volkswagen has admitted for the first time that the diesel emissions scandal was the result of systematic failures within the company, rather than just the actions of rogue engineers.Volkswagen has admitted for the first time that the diesel emissions scandal was the result of systematic failures within the company, rather than just the actions of rogue engineers.
Hans Dieter Pötsch, the VW chairman, said there had been a “whole chain” of errors at VW and a mindset within it that tolerated rule-breaking. Hans Dieter Pötsch, the VW chairman, said there had been a “whole chain” of errors at the German carmaker rather than a “one-off”. There was a mindset within the company that tolerated rule-breaking, he said.
Related: VW emissions scandal: misconduct, process failure and tolerance of rule-breaking blamed - liveRelated: VW emissions scandal: misconduct, process failure and tolerance of rule-breaking blamed - live
Speaking at a press conference in Germany, Pötsch said engineers had installed defeat devices in diesel engines after realising they could not hit emissions targets by “permissible means”.Speaking at a press conference in Germany, Pötsch said engineers had installed defeat devices in diesel engines after realising they could not hit emissions targets by “permissible means”.
Nine managers have been suspended over possible involvement in the scandal. Although Pötsch said no senior executives were believed to have been actively involved in cheating emissions tests, he warned: “This is not only about direct but overall responsibility.”
VW has admitted installing defeat devices in 11m vehicles worldwide to cheat diesel emissions tests. It faces the prospect of paying tens of billions of euros in fines and compensation to customers.VW has admitted installing defeat devices in 11m vehicles worldwide to cheat diesel emissions tests. It faces the prospect of paying tens of billions of euros in fines and compensation to customers.
Pötsch said an investigation led by 450 internal and external figures was continuing and that more details would be provided in April. Pötsch said an investigation involving an internal and external team of 450 people was continuing and more details would be provided in April. A team led by the law firm Jones Day has already interviewed 87 members of staff, seized 1,500 devices belonging to 400 employees and trawled through data equivalent to 50m books.
He said the scandal was the result of a combination of individual misconduct and mistakes in one part of the business, flaws in company processes and a tolerance of rule-breaking in parts of the carmaker. The VW chaiman said the scandal was the result of a combination of individual misconduct and mistakes in one part of the business, flaws in company processes and a tolerance of rule-breaking in parts of the carmaker.
“All of this goes against the values of VW,” Pötsch said. “All of this goes against the values of VW,” Pötsch said. “We are relentlessly searching for those responsible for what happened and you may rest assured we will bring these persons to account.”
On Wednesday, VW announced that the number of cars with irregular carbon dioxide levels is far lower than originally feared, providing some much-needed respite for the beleaguered company. VW will try to avoid a similar crisis in the future by overhauling its infrastructure and internal systems. For example, emissions tests will be verified by external and independent third parties.
Pötsch said: “We will also be introducing universal on-road emissions measurements during real-life driving, and we hope that will help us win back trust.
“Even though we cannot prevent misconduct by individuals once and for all, in future it will be very difficult to bypass our processes.”
Related: Volkswagen sees 25% US sales drop compared with 2014 after scandalRelated: Volkswagen sees 25% US sales drop compared with 2014 after scandal
The company will repair cars in Europe affected by the scandal in the second and third quarters of next year. Vehicles with 1.6-litre engines will require a new flow transformer device, part of the air intake system, to be fitted alongside new software.
However, VW is still working on repairs for vehicles in the US, where emissions targets are more stringent, and a compensation package for motorists.
Matthias Müller, the VW chief executive, said: “Even though this situation is serious, the company will not go to pieces because of this.”
Related: VW sales drop 20% in UK as diesel emissions scandal hits carmaker
Müller, who replaced Martin Winterkorn in September, pledged to overhaul the culture of the company to make it more open, transparent and less hierarchical, and remove divisions between brands.
He also pledged “greater humility” at VW, involving selling its private Airbus A319 aircraft and toning down its presence at motor shows.
The press conference followed a rare piece of good news for VW. On Wednesday, the company announced that the number of cars with irregular carbon dioxide levels was far lower than originally feared.
VW warned last month that CO2 emissions levels and fuel consumption figures may have been rigged in 800,000 cars. However, it now believes that only about 36,000 vehicles are affected.VW warned last month that CO2 emissions levels and fuel consumption figures may have been rigged in 800,000 cars. However, it now believes that only about 36,000 vehicles are affected.
Shares in VW, which have fallen 30% since the emissions scandal emerged in September, rebounded following the news.Shares in VW, which have fallen 30% since the emissions scandal emerged in September, rebounded following the news.
The dramatic admission that VW may have rigged CO2 emissions as well as diesel emissions had threatened to significantly escalate the crisis at the company.The dramatic admission that VW may have rigged CO2 emissions as well as diesel emissions had threatened to significantly escalate the crisis at the company.
VW estimated the “economic risks” of the CO2 discovery at €2bn (£1.45bn), but said is too early to lower this estimate until more is known about the scale of the emissions rigging. VW estimated the “economic risks” of the CO2 discovery at €2bn (£1.45bn), but said it was too early to lower this estimate until more was known about the scale of the emissions rigging.