VW officials have been apologizing profusely about the diesel scandal, but it appears it was Audi engineers that actually developed, but never used, the device.
The so-called “defeat device” used to help millions of Volkswagen diesel vehicles illegally pass emissions tests was first developed in 1999 by the maker’s luxury arm Audi, according to a report published today by the German newspaper Handelsblatt.
The technology, which could detect when a vehicle is undergoing emissions tests and then modify certain engine functions to clean up the exhaust, was not put into use by Audi, however. It was instead adopted six years later by the Volkswagen brand when it was unable to meet toughened U.S. clean air standards.
That decision came back to haunt the German giant. Last September, the U.S. Environmental Protection Agency accused VW of rigging more than 400,000 vehicles sold in the U.S. – the maker subsequently confirming it used the illegal software on 11 million vehicles sold worldwide. It is now facing a raft of lawsuits in the U.S., Europe and other parts of the world and may eventually pay billions of dollars in fines and legal settlements.
Diesels have been a mainstay in Europe for several decades, but after an initial surge in demand in the mileage-conscious 1980s, demand petered out in the U.S. European makers began pushing for a revival around the turn of the millennium, but increasingly stringent emissions standards threatened to block that possibility.
Audi apparently explored opportunities that would help it pass tests focused on one of the two biggest challenges to diesel: production of smog-causing oxides of nitrogen. In 1999, it came up with the idea of detecting emissions tests and then triggering changes in engine behavior that would bring its diesels into compliance.
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According to Handelsblatt, the solution was not implemented by Audi, but was later picked up parent Volkswagen. The VW brand was intent on adding diesels to its U.S. line-up, promoting the idea that it could deliver better mileage, reduced fuel consumption and lower emissions out of the same engine. When that proved impossible, it programmed a version of the cheat software into its diesels.
The defeat device, though, was installed on the engine controllers used on all 2.0-liter diesels, including those sold in the U.S. and other markets, VW confirmed last autumn, about 11 million vehicles being implicated. The maker subsequently admitted cheating on emissions tests with its higher-end 3.0-liter diesel, as well.
The revelations have resulted in a cascading series of problems for Volkswagen and sibling Porsche and Audi brands, the latter using some of VW’s diesels. Among other things, none of their diesel models, such as the Volkswagen Golf TDI and Audi A4 TDI can be sold in the U.S. until a fix can be found that will meet American emissions standards.
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VW has already begun reprogramming and updating various diesel models sold abroad, but it has yet to come up with a fix for American vehicles that passes muster with the EPA. A federal judge in San Francisco last month extended a deadline, but the carmaker could be found in contempt if it doesn’t come up with an acceptable solution by Thursday, April 21.
That judge has been assigned to oversee more than 500 lawsuits filed by Volkswagen diesel owners. The carmaker has also been hit with legal claims from dealers and investors, both arguing they have suffered financial losses because of VW’s subterfuge. And the U.S. Justice Department has initiated its own civil case that could result in as much as $46 billion in penalties.
Additional criminal investigations are underway in the U.S., Germany and elsewhere. While senior VW executives have argued that the cheating was initiated by a “handful” of rogue engineers, German media have reported that dozens of employees have been implicated in an internal probe. Part of the challenge for investigators has been sorting through numerous code words, such as “acoustic software,” that VW insiders used to disguise their efforts.
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The German maker has so far declined to respond to the Handelsblatt report. But comments could be forthcoming on Friday when Volkswagen AG holds its previously delayed annual meeting. Supervisors are also expected to release the carmaker’s overdue financial report. At least some of the costs associated with the diesel scandal are expected to have been written off in 2015.