Reports say VW cheating software was built by Audi in 1999

Article by Andrew Christian, on April 26, 2016

With the breakout of the recent emission scandal of Volkswagen (VW), it was revealed that the defeat devices were made some time ago. But recent reports from The Guardian and German newspaper Handelsblatt have found out that it was actually the engineers from Audi who came up with the first emissions defeat software in 1999. However, Audi did not use the cheating software.

The European carmaker ended up using the defeat devices when they cannot bring the nitrogen oxide emission levels below the regulatory requirements. It was in September 2015 when VW finally caved in and admitted manipulating the emissions test results of over 11 million diesel-powered vehicles, which include Audi, Porsche, Seat, Skoda, and VW brands.

VW and Audi did not comment on the reports yet since investigations about the emission scandal are still ongoing. Moreover, a substantial report about the findings will be issued by the end of the month.

Scandal Impact

Due to the cheating scandal, the company’s stock has lost a total of €4.10 billion for the fiscal year (FY) 2015. As VW has come up with a fix for the affected vehicles and their owners, the German carmaker has already more than doubled its provision to €16.20 billion. This is part of the company’s efforts to put a sto to more than 600 class action civil suits. Furthermore, VW has also spent €400 million for the restructuring of its passenger car divisions and commercial cars.

Earlier this week, VW came up with a final agreement with the US authorities. The carmaker is mandated to buyback or fix over 500,000 affected vehicles, fund environmental causes, and allot compensation funds for affected consumers. Despite this, some analysts are firm that VW’s crises are far from over.

VW CEO Matthias Müller explained that the provision is weighing on the company. However, VW is committed to solving the dilemma even if it means having to use its resources.

According to Müller, VW’s supervisory board already accepted the board of management’s proposal to cut their contractual pay. This indicates that an “ordinary board member” will receive a €3.20 million for 2015, down by 39% from the €5.30 million pay in 2014. Moreover, the performance-related pay of executives will also be reduced by 30%. Müller reiterated that these decisions reflect the dedication of all VW employees to make up for the troubles caused by the company’s malpractices.

The company is expected to release its financial results for the full-year 2015 on April 28.

Topics: audi, dieselgate, vw

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