The German automobile manufacturer Volkswagen is in the middle of controversy. New reports suggest that the diesel deception scandal may affect an outrageous number of vehicles.
According to Reuters, the scandal over falsified U.S vehicle emission tests could affect 11 million Volkswagen automobiles internationally, and this puts pressure to CEO Martin Winterkorn.
The world's largest automobile manufacturer said that they would set aside 6.5 billion euros or $7.3 billion in its third-quarter account to cover the cost resulting from their mistakes, which analysts believe would be blowing a hole in the company's profit.
There's also a possibility that the amount will rise because diesel cars with so-called Type EA 189 engines built into Volkswagen models worldwide show a "noticeable deviation" in emission level between testing and road use.
CBC reports that Volkswagen installed a sophisticated software known as "defeat device" in the electronic control modules of their diesel vehicles issued between 2008 and 2015. The software is reportedly very impressive, being able to sense when emission testing is in progress just based on the position of the steering wheel, vehicle speed, duration of the engine's operation and barometric pressure.
When the software picked up these inputs it will shift into a type of "test mode" that allows emissions controls to run full-tilt during official testing. But while on the road, the car emitted 10 to 40 times the legal amount.
The charges were made by the US Environmental Protection Agency on Sept. 18, after independent researchers raised their concerns about emission levels, which prompted the government to investigate further.
When the regulators demanded for an explanation, EPA said that Volkswagen admitted their cars were equipped with those defeat devices.
The report claimed that high-ranking executives have already released their statements. CEO Winterkorn said in a statement, "Millions of people in the world trust our brand, our cars and our technology. I am endlessly sorry that we have betrayed that trust," The Wallstreet Journal has learned.
Winterkorn assured everyone that Volkswagen will cooperate with the regulators. "We do not and will not tolerate violations of any kind of our internal rules or of the law," he added, according to CBC.
Volkswagen called for external investigation and is conducting an internal analysis about the matter.
During the launch event on Brooklyn this week, Volkswagen North America CEO Michael Horn made a striking admission that "our company was dishonest" and in addition stressing that Volkswagen "totally screwed up."
A press release on Sept. 21 referred the defeat devices as software "irregularities."
Volkswagen may fine $37,500 for each vehicle, according to EPA last week. With around 482,000 of its diesel vehicles sold in the U.S since 2008, the company could be charged with a penalty of up to $18 billion.
