Audi Engines Implicated in Emissions Scandal
November 26 2015 - 8:00PM
Dow Jones News
Engines from Volkswagen AG's luxury brand Audi AG have been
implicated in the German car maker's emissions crisis, leading the
unit to suspend two engineers suspected of rigging engines to cheat
emissions tests.
Authorities in the U.S. and Germany have launched investigations
of the world's No. 2 premium car maker on Wednesday, marking the
first time that engines built by Audi for the Volkswagen group are
clearly in the focus of the emissions crisis.
The emissions scandal, which broke on Sept. 18, involved diesel
engines built by the VW brand that were also used by Audi and other
units of the Volkswagen group. The new U.S. and German
investigations focus on larger three-liter V6 engines designed and
built by Audi. U.S. environmental authorities have said that one
model of the V6 engine contained software to circumvent emissions
tests, known as a defeat device.
In an interview published Thursday, Audi Chief Executive Rupert
Stadler told a regional German newspaper that the company's
engineers—who had repeatedly told the management board that the
three-liter V6 didn't contain a defeat device—changed their story
during a board meeting last week.
"I asked them: Is that a defeat device?" Mr. Stadler told
Donaukurier in an interview that appeared on the newspaper's
website. "And then they said, 'We have to assume that in the USA
part of the software that controls the [engine] heating function
can probably be considered a defeat device."
Mr. Stadler said it still isn't clear if Audi engineers acted
knowingly with the intent to commit a crime. Volkswagen and Audi
have said repeatedly that the software on the V6 engines is only
designed to heat the engine to enhance reduction of nitrogen oxide
emissions. Mr. Stadler said Audi is now conducting its own
investigation into the technology.
Audi confirmed the veracity of the comments made by Mr. Stadler
in Donaukurier.
Audi had told U.S. environmental authorities earlier this month
that these V6 engines—which are used in Audi sedans and a family of
luxury sport-utility vehicles produced by Audi, VW, and
Porsche—didn't comply with U.S. environmental law. As a result, the
California Air Resources Board, or CARB, on Wednesday launched an
official probe of Volkswagen, Audi and Porsche vehicles using the
three-liter diesel engine in the model years 2009-2016. It gave VW,
Audi and Porsche 45 days to submit a detailed recall plan for the
cars.
"We fully intend to work on solutions to present to regulators
within this window of time," a spokesman for Audi in the U.S. said
in an email response. "We take this very seriously and treat
responses to the agencies as a solemn responsibility."
German prosecutors also launched new investigations into
allegations of cheating by Audi on Wednesday. The U.S. and German
investigations could lead to criminal charges against Audi
employees. No individuals have so far been charged with wrongdoing
in the investigations of Volkswagen or Audi.
The two suspended Audi engineers join three top engineers—one
from VW, one from Audi, and one from Porsche—with senior management
roles suspended in September.
Meanwhile, a spokeswoman for the U.S. Environmental Protection
Agency said the agency is weighing possible enforcement options
against Volkswagen related to the three-liter diesel-engine
vehicles and continues to investigate the matter.
Thursday's disclosure puts pressure on Mr. Stadler, a veteran
Volkswagen executive. Mr. Stadler's background is in finance and
his lack of engineering expertise has long been seen inside
Volkswagen as an obstacle to him ever becoming CEO of the
Volkswagen group. The current crisis raises questions about his
ability to grasp the complex technology issues in a crisis that is
rooted in the company's engineering culture.
Mr. Stadler has declined repeated requests to speak to The Wall
Street Journal about the emissions crisis.
Labor representatives at Audi endorsed Mr. Stadler Thursday,
saying he "must continue as chief executive" to lead the internal
investigation.
News of the new investigations came as Volkswagen provided
details about how it plans to fix nearly nine million cars in
Europe tainted by the diesel software used to manipulate emissions
tests.
The fix will be carried out by a combination of a software
update and installation of a small cylindrical part that stabilizes
air flowing into the engine, allowing more precise fuel injection
and greater reduction of toxic emissions.
The repair will be necessary for 1.2-liter and 1.6-liter diesel
engines. The newer 2.0-liter engines only require a software
update.
The emissions scandal affects nearly 11 million vehicles
world-wide, most of which are in Europe. About 500,000 cars in the
U.S. are affected by the software.
The relatively simple fix for the lion's share of the tainted
vehicles is welcome news for Volkswagen and suggests that the costs
of a global recall set to begin in January could be significantly
lower than initially expected.
It is still unclear how Volkswagen will fix the affected
vehicles in the U.S. The company said the fix approved in Europe
isn't applicable to the U.S. vehicles. Volkswagen is in talks with
U.S. environmental authorities over how to fix the cars in the
U.S.
Write to William Boston at william.boston@wsj.com, Friedrich
Geiger at friedrich.geiger@wsj.com and Mike Spector at
mike.spector@wsj.com
Access Investor Kit for "Volkswagen AG"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664039
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 26, 2015 19:45 ET (00:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.