So now Volkswagen lied about gasoline-powered cars

04 November 2015 2:24 pm

How does Volkswagen’s diesel emissions scandal get worse? When it involves gasoline powered cars.

Back in September, Volkswagen admitted it had used sneaky software to rig emissions tests on its diesel powered cars. Grilled by the US Environmental Protection Agency, Volkswagen fessed up to employing a "defeat device" -- a system that's programmed to know when the car's being tested so it automatically turns on its full emissions control systems. Post-testing, it then goes back to normal mode, where those controls are switched off, during every day driving circumstances. Now those cars were emitting nitrogen oxide.

Now The Wall Street Journal reports that Volkswagen admits it had understated the emissions of 800,000 cars, including gasoline powered vehicles. These cars produce carbon dioxide, you know, the stuff that contributes to global warming?

This disclosure is the first to involve the greenhouse gas carbon dioxide, which has been a focus of both European and US authorities over the past decade.

Volkswagen says the new finding could add at least €2 billion ($A3 billion) to the €6.7 billion already set aside for fixes to the affected vehicles.

That doesn’t include litigation, fines or customer compensation

“VW is leaving us all speechless,” Arndt Ellinghorst, a London-based analyst with Evercore ISI told Bloomberg.

It just gets worse and worse for Volkswagen. For sure, Volkswagen will recover. But it will take years. The big challenge they have is convincing the public they want to resolve the issue. So far, they're not doing real well.