Retains EUR6.7-bil. cost estimation

The Volkswagen (VW) brand has presented the technical solution it will employ to fix the emissions situation on the 1.6-litre and 2.0-litre variants of the EA189 powertrain to the German Federal Motor Transport Authority (KBA). This means that VW has presented a specific technical solution for the majority of the cars affected by the NOx emissions software issue. In its press statement VW said, "In the development of the solutions, the focus was on maximum customer-friendliness. After implementation of the technical measures, the vehicles will comply with the applicable emissions standards." After being presented to the KBA the federal authority has ratified the technical solution which means that VW can begin the process of implementing the physical recall of the affected cars.

The technical measures developed for the EA189 diesel engines have been presented to the Federal Motor Transport Authority. Following an intensive examination, these measures have been ratified by the Federal Motor Transport Authority, bringing clarity regarding the correction of the irregularities for the majority of the vehicles affected.

According to the VW press statement the precise technical details of the recall are as follows.

Outlook and implications

VW rightly says that the technical fix it outlines here will address the issues with the vast majority of cars affected by the EA189 diesel emissions affair. VW has said that strong advances in engine development, and specifically in improved "simulation of currents inside complex air intake systems, in combination with software optimisation" have allowed the company to come up with a fix for the EA189 powertrains in Europe that is simple and customer-friendly and that will bring the powertrain into compliance with emissions regulations. Another important factor for VW is that the relative simplicity of the fixes means that the company will be able to keep the cost of recall manageable, something that is especially the case with the software fix for the 2.0-litre powertrains which will require no additional components. The relative simplicity of the fix will also be the reason that VW is sticking to its cost target of additional outlay in the region of EUR6.7 billion (USD7.12 billion). At the same time VW has avoided the temptation to lower the cost estimate as a result of the simplicity of the fix, which appears wise. A spokesperson told Reuters, "As long as VW does not know how much it will incur in total costs to correct the manipulated vehicles, there is no reason to alter planned provisions." The target with the EA189 fix is to achieve the legal level of NOx emissions without any adverse effect on the engine power, fuel consumption and performance and the firm believes it has done this. If it can complete the recall smoothly and provide a high level of customer service, including offering customer suitable replacement vehicles while work is being done (which it has said it will do), VW has a good chance of minimising the damage to its relationship with its customers in Europe. Based on the technical fix approved by the KBA, VW plans to roll out the fix in all EU28 countries with the physical recall starting from January next year, and it foresees that it will take the full calendar year for the recall to be rolled out for all the engine variants and for all affected vehicles. Now the VW brand has outlined the fix, the Audi, SEAT, Skoda and Volkswagen Commercial Vehicles will announce corresponding measures for their affected vehicles.

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