VW 'Manipulated Emissions Tests In Europe'

Volkswagen (Other OTC: VLKAF - news) manipulated emissions tests in Europe as well as the US, Germany's transport minister has said.

Alexander Dobrindt said: "We have been informed that also in Europe, vehicles with 1.6 and 2.0 litre diesel engines are affected by the manipulations that are being talked about."

He added it was unclear how many vehicles in Europe were affected and confirmed random tests would be carried out on cars made by other manufacturers.

The VW controversy is centred on "defeat devices" it used to fool US emissions tests on diesel cars into believing the vehicles met environmental standards.

The company admits the software, which switches engines to a cleaner mode during official testing, may have been fitted in 11 million vehicles worldwide.

VW has not responded to Mr Dobrindt's claim.

At least 482,000 cars are to be recalled and the carmaker could face penalties of more than $18bn (£11bn) in the US alone.

:: VW Emissions Scandal: Key Questions Answered

Volkswagen will start firing people responsible for manipulating the tests on Friday, sources told the Reuters news agency.

The carmaker's supervisory board will give initial findings from an internal investigation into who was responsible as well as revealing a successor to chief executive Martin Winterkorn, it reported.

German newspaper Bild reported that two of Volkswagen group's most senior engineers will be forced to leave.

Audi (Other OTC: AUDVF - news) 's research and development boss Ulrich Hackenberg and Porsche's engine chief Wolfgang Hatz will be dismissed, Bild reported, citing unnamed company sources.

VW and Porsche declined to comment on the report, while Audi could not be reached for comment.

The global impact of the scandal is not yet known, with UK drivers waiting to find out if their cars are affected.

It (Other OTC: ITGL - news) has been warned the scandal could lead to Britain's biggest ever class action lawsuit.

Bozena Michalowska-Howells of law firm Leigh Day said: "If it is shown that this piece of software defeated the European testing then Volkswagen would be in a very similar position as it is in the US and may well then have to call in their cars with all the resulting costs involved.

"This could well lead to one of the largest group claims ever in this country against Volkswagen for the way in which consumers may have been misled in relation to their vehicle."

:: The End Of Europe's Love Affair With Diesel?

Mr Winterkorn quit VW on Wednesday, saying he accepted responsibility for "irregularities found in diesel engines" but had not been aware of any wrongdoing.

VW has set aside an initial £4.7bn to cover the fallout and "win back the trust" of customers.

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