Volkswagen chief talks of no further cheating evidence beyond the emission scandal

Volkswagen Group is tackling the biggest business crisis throughout its 78 years of operation post its admission in September that it had cheated US emissions tests on diesel vehicles. The Group also added this month that fuel usage had also been understated in some vehicles.


According to the top brand executive at Volkswagen, there is no further evidence of any cheating or misconduct at the iconic carmaker beyond the carbon dioxide manipulation and diesel emission scandal post the reported drop in sales for the first month after news of the scandal. Herbert Diess also talked of how there were no job cut threats for permanent staff owing to the scandal.


An independent inquiry at Volkswagen by acclaimed U.S. law firm Jones Day into the emissions test cheating has been operational since September. Volkswagen has pledged to fast track a programme to encourage greater cooperation of its staff in this investigation. Volkswagen’s top management and labor representatives are currently in talks with regard to balancing future investments and spending cuts. The company is bracing for a bill that should be running into billions in fines, vehicle refit costs and lawsuits. Diess is also considering lowering temporary staff at its namesake division, the biggest owned by the automaker.


Bonus payments to workers would not remain at the level they were at last year according to company sources. Sales in October showed a drop by 5.3% after a drop of 4% in September. The fall is being seen as an impact of the controversy coupled with the temporary ban on diesel car sales in Western Europe. Sales at divisions like Audi and Czech division Skoda also witnessed a steep drop by at least 3.5%. According to sales chief at the VW brand, Juergen Stackmann, the company is working hard to restore customer trust in the products and brand name.


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