After new revelations, Germany will retest all Volkswagen car models in order to gauge their genuine emissions levels. This is occurring six weeks into its biggest-ever corporate scandal finally pushing the government to act.
Transport Minister Alexander Dobrindt said that all current models sold under the VW, Audi, Skoda and Seat brands – with both diesel and petrol engines – would be tested for carbon dioxide and nitrogen dioxide emissions.
VW said it had told U.S. and Canadian dealers to stop selling recent models equipped with its 3.0 V6 TDI diesel engine.
The German government’s announcement followed a statement from Volkswagen that it had understated the level of carbon dioxide emissions in around 800,000 cars sold mainly in Europe. This consequently also understated their fuel usage.
The revelations have added a brand new dimension to a crisis that had previously focused on how Europe’s biggest car manufacturer cheated in U.S. tests on diesel cars for emissions of nitrogen oxide, which cause smog. Previously, the government had said it would review only nitrogen dioxide emissions from VW diesel cars.
The admission about fuel consumption is the first that threatens to make a serious dent in VW’s sales since the scandal erupted as it could deter cost-conscious consumers, analysts said.
Volkswagen will most likely be adding 2 billion euros ($2.2 billion) to its expected costs from the scandal with the newly revealed information to include gasoline cars, not just diesel.