VW emission scandal: VW admits 800,000 cars have false CO2 & mpg certification

In what seems to be yet another blow to the already battered reputation of the Volkswagen Group, the German carmaker has now admitted that up to 800,000 petrol and diesel-powered cars have had their CO2 and mpg (miles per gallon) ratings wrongly certified.

In a statement, VW revealed: "Under the ongoing review of all processes and workflows in connection with diesel engines it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process. The majority of the vehicles concerned have diesel engines."

It also pledged to "immediately start a dialoge with the responsible type approval agencies regarding the consequences of these findings". The statement also described the situation as a "not yet fully explained issue".

Reports suggest that the latest scandal affects Audi, Seat, Skoda and VW cars with what are described as "small" engines. The cars powered by the 1.4-litre four-cylinder petrol engine with ‘Cylinder On Demand’ technology are affected. Further reports suggest that VW BlueMotion diesel models with three- and four-cylinder diesel engines are also affected.

The company said it has set aside two billion euros (Rs 1.44 lakh crore) to cover the cost of this latest revelation, although it cautioned that it would need to consult officials before fully understanding the legal and econimic implications of the discovery. It has not said whether it will compensate owners of affected cars.

In the statement, Matthias Müller, CEO of Volkswagen, said: “From the very start I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth. That is the basis for the fundamental realignment that Volkswagen needs. The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency.”

The VW statement also stressed that the safety of the vehicles affected is in no way compromised.

Meanwhile, the Supervisory Board of the VW Group issued a separate statement expressing alarm at the latest discovery. It said: "The Supervisory Board is deeply concerned by the discovery of irregularities found when determining CO2 levels for the type approval of Volkswagen Group vehicles. The Supervisory Board and the special committee set up for the purpose of clarification will meet in the very near future to consult on further measures and consequences. The Supervisory Board will continue to ensure swift and meticulous clarification. In this regard, the latest findings must be an incentive for the Supervisory Board and the Board of Management to do their utmost to resolve such irregularities and rebuild trust."

VW sells some of its “small engine” cars in India including the likes of the Polo, Vento and Skoda Rapid. It has been more than a month since the Indian government started its probe into the impact of the dieselgate and while there have been no answers from VW yet, the new developments could further add to German carmaker’s woes. 

More from Volkswagen emissions scandal:

- Volkswagen India reports second consecutive decline in sales in October

- VW Dieselgate threatens Porsche

- VW India to submit emission scandal report by end-November

- Are Made-In-India cars affected?

- Company to cut investments by €1 billion per year

- The routine study that led to the discovery of the VW scandal