Volkswagen Cheats to Evade Emissions Testing

 Volkswagen began installing software devised to cheat on emissions tests in 2008 after realizing that a new diesel engine, developed at great expense, could not meet pollution standards in the United States and other countries, people with knowledge of the automaker’s internal inquiry said on Sunday.

Rather than stop production of the engine and throw out years of work and investment, managers decided to cheat, the people said, confirming a report in Bild am Sonntag, a German newspaper. They did not want to be identified because of the sensitivity of the issue.

 

It remained unclear who was responsible for the decision, which has created a crisis at the world’s largest automaker. The deception will force the company to undertake costly repairs on as many as 11 million affected vehicles and has tarnished Germany’s image as a bastion of engineering prowess.

In late September, Volkswagen suspended three top managers who played prominent roles in engine development, but the carmaker has not publicly disclosed the reasons for the suspensions.

“We are working intensively to clarify what occurred,” a company spokesman said in a statement. “Thoroughness comes before speed. We will provide information as soon as we have facts.”

Volkswagen is expected to disclose some of the findings from its internal inquiry this week. By showing that it is aggressively investigating what led to the fraud, the company may be seeking to limit further damage to its reputation and future car sales.

After interviewing engineers who participate in engine development, internal auditors have determined that the illegal software was installed beginning in 2008, according to the people familiar with the inquiry, which is still at a preliminary stage.

By then, Volkswagen had spent several years developing a new diesel engine line, known as the EA 189, which included both 1.6- and 2.0-liter versions, and was preparing for production. The EA 189 was one of the most important engines in the company, destined not only for millions of Volkswagen-brand cars but also for a wide variety of other brands from the parent Volkswagen Group, like Audi, Skoda and Seat, as well as some light utility vehicles.