Saturday, October 17, 2015

VW produced various types of software to alter emissions – FORTUNE

BERLIN (Reuters) – Volkswagen produced several versions of its “cloaking device” to alter software testing gas emissions of their vehicles, said three sources close the issue, suggesting that the practice was very widespread within the German automaker.

During seven years of tampering with evidence confessed to authorities, Volkswagen altered his illegal for four types of software engines, sources said, including a manager of the company with knowledge of the matter and a US official close to the investigation into the company.

VW spokesmen in Europe and the United States declined to comment on the statements of sources.

Asked about the number of people in the car that could have been aware of the illicit practice, a company spokesman said: “We are working hard to find out who knew, and when, but it is too early to put it. ”

Some experts and industry analysts said the fact that there were several versions of the device increased the possibility that many employees were involved.

The software technicians have needed a constant financing and knowledge of engine programs, they added.

The number of people involved is crucial for investors because it could affect the amount of possible fines and scope of a possible restructuring at the level of company managers said Arndt Ellinghorst, an analyst at Evercore ISI .

Volkswagen, Europe’s biggest carmaker, has been criticized by some lawmakers and analysts blame a small number of individuals by the installation of illegal software in up to 11 million vehicles worldwide, even though that the investigations were continuing.

temporary workers, ‘endangered’

Volkswagen is considering reducing the number of temporary workers as part of its efforts to offset the costs of scandal gas emissions in their vehicles, said Saturday the works council of the German carmaker.

A spokesman for the council, in which representatives of workers within the company are integrated, said he would support efforts to ensure the temporary jobs, but knew that the board of the group is discussing “different scenarios.”

Volkswagen said in a statement that the outlook for sales and employment levels were unpredictable after announcing on Friday a drop in the number of deliveries of its car division and the entire group, which has 12 brands .

“If the employment is temporarily reduced, reducing working hours will be a reasonable option,” VW said, adding that the executive board is doing everything possible to secure the jobs said.

Before the scandal over the manipulation of emissions of diesel engines, Volkswagen said reduced by 1,000 million euros (1,100 million dollars) a year investment plans at its largest division.

According to some analysts, the scandal could cost Volkswagen about 35,000 million euros (40,000 million dollars) to cover repairs of vehicles, regulatory fines and lawsuits stemming from the scandal.

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