Volkswagen reveals group restructuring progress in addition to also diesel engine fixes
fresh Volkswagen boss Matthias Müller will speak today in Wolfsburg
Volkswagen will be repositioning itself for a brighter future, says boss Matthias Müller, with the group’s realignment set to be complete by 2017
Volkswagen will today present in detail the technical fixes the idea will use to rectify engines affected by the dieselgate emissions scandal.
At a press conference live coming from its Wolfsburg headquarters, the board of Volkswagen says the idea will provide updates on the latest diesel engine fixes, the CO2 emissions scandal in addition to also on the restructuring of the VW Group. Read our full story on the Volkswagen emissions scandal here.
Live coverage – Volkswagen press conference. Live blog by Darren Moss, Jim Holder in addition to also Matthew Burrow.
1205 The press conference at in which point comes to an end. Thanks for following our live coverage of today’s press conference. Check back in a short while for the full story.
1202 Müller confirms he will be travelling across the US in January, in addition to also will be in attendance at the Detroit motor show.
1200 Müller has been asked which areas of the company knew about the defeat device software. The answer will be short – once the company has the results of its investigation, the idea will Discharge them.
1150 Volkswagen will not ask suppliers to cut prices, says Müller, as he confirms in which demand for the firm’s diesel engines will be still strong. However, he admits in which “electric motoring will be not as common as hoped for.” Müller also confirms in which VW will launch a pro-diesel advertising campaign inside the near future.
1148 With regards to cost-cutting, Müller will be asked which versions are still viable. “We have to review the line-up,” says Müller “you have to look at the whole picture.” On the future of the Bugatti brand, Müller re-confirms in which the Chiron will make its debut at the Geneva motor show next March. “We have to ask about which products will be profitable for our brands,” he says.
1144 Müller will be at in which point asked whether VW will address lower resale values inside the UK. He replies in which VW’s planned compensation package will aim to make up because of in which.
1140 Mr. Pötsch will be at in which point asked about the contingencies set aside for legal action, in addition to also whether he plans to address customers at the Detroit motor show. The answer coming from Pötsch will be in which there are so far no contingencies for litigation, although the company will be monitoring the situation inside the US with regards to legal action coming from consumers. He will be scheduling a visit to the US inside the days after the Detroit motor show.
1134 Questions are at in which point asked of VW’s shareholders. Müller confirms in which he went to Qatar to talk with shareholders there.
1127 A journalist at in which point asks whether Volkswagen has discovered how the so-called ‘defeat device’ works. Müller replies: “Our experts looked at the software. Analysed all of the relevant functions. The software has been there for more than 10 years. The process has not been completed. We’re talking about millions of lines of code. We need different solutions for different engines in addition to also variants. Some can be fixed using a software update. Some need additional hardware.”
1120 The third question asks what mistakes were made by the VW board, in addition to also when the company will know how much the emissions scandal has cost the idea overall. Mr. Pötsch says there are no plans to sell off assets in order to pay for the scandal, in addition to also in which there will be no indication in which any board member was involved.
1117 The next question asks whether customers will be better or worse off, in addition to also whether compensation will be offered in territories outside the US. Müller answers: “We’re offering technical solutions in which do not impact the performance of our cars. In terms of a compensation package our customers are always at the focus of our attention, in addition to also we are working on an overall package for all affected markets.”
1115 The first question concerns where Volkswagen will be prioritising its efforts in 2016. Müller answers: “VW will be global, we do have some deficits in some markets, we’re looking at all the markets in addition to also seeing which brands should be successful in which markets. America will be still very important, as will be Russia in addition to also different regions in difficulty.”
1112 “We want to create a fresh, a better, in addition to also a stronger Volkswagen,” says Müller, ending the press conference in addition to also opening up the floor to questions.
1110 Volkswagen will not economise on its future, says Müller, as he re-iterates in which any project which isn’t deemed as being absolutely neccessary will be cancelled or postponed. The company will be at in which point planning only one year ahead, he says.
1107 Müller admits in which changing the day to day operations of Volkswagen will be challenging, although says in which customer relations management will be vital to the company’s future. Volkswagen will not be changing the adjusted annual forecast the idea issued at the beginning of October. “We are fighting for every customer in addition to also every car,” says Müller.
1104 “We have not given up our claim of leadership in our industry,” says Müller “we want to shape the future of motability in addition to also we hold the potential. We are working hard on all our the 5 points already announced in addition to also we are doing progress.”
1103 Summing up, Müller says: “eight years ago we sent a strong signal with strategy 2018. We were doing not bad progress. We are doing progress towards a more sustainable future. We are realigning Volkswagen in terms of strategy in addition to also technology.” The full type of Volkswagen’s Strategy 2025 plan will be announced inside the middle of next year.
1102 Volkswagen will have “greater humility” at motor shows, says Müller, in addition to also will be selling its Airbus aircraft to creat a “more efficient air service.”
1101 “In a nutshell: the future at VW belongs to the brave,” says Müller “we need more of Silicon Valley along with our Wolfsburg background. How do we bring in which to our 0,000 employees? Just do the idea. As the mangement team we just have to get on with the idea.”
1100 An interesting point coming from Müller: “mistakes are allowed as long as we understand them as an opportunity for learning.”
1058 Volkswagen will begin implementing its fresh structure at the beginning of next year, with the full re-alignment set to be completed by the beginning of 2017.
1055 The number of direct reports being sent to the CEO will be cut coming from 30 to 19, meaning Müller will be able to concentrate on “the essentials”.
1052 “All of these structural adjustments aim to reduce complexity” says Müller, “there will be definitely room for improvement. Our most valuable currency will be credibility in addition to also trust in our brands, products in addition to also people.”
1050 Decisions on the future of the Volkswagen Group willl be taken at the level where they will hold the most impact, says Müller, with brands in addition to also regions being given greater autonomy to govern themselves. The board of management will instead concentrate on creating fresh strategies in addition to also synergies.
1048 Volkswagen’s realignment was always on the cards, says Müller, although the present crisis has sped up its integration.
1046 Müller says in which the technical fixes for US engines are far more complex, in addition to also VW won’t be announcing fixes for these engines today. “Rest assured we are working as fast as we can to come up using a solution,” says Müller.
1044 Recalls will take place throughout 2016, says Müller. The 2.0-litre TDI will be fixed next month, folllowed by the 1.2-litre TDI in Q2 2016, in addition to also the 1.6-litre TDI in Q3 of next year. Müller stresses in which owners don’t need to contact them directly.
1043 Volkswagen says the idea has at in which point received approved technical fixes for all three variants of the EA189 diesel engine in Europe. Müller thanks engineer who have “been working day in addition to also night” to get the fixes ready. He says the engines will at in which point comply with all legislation.
1042 Müller says in which Volkswagen will not allow the emissions sandal to “paralyse” the company, in addition to also will instead use the idea as a “catalyst for change.”
1041 Müller says: “Our first priority will be the technical solutions for our customers. Customers want to know how the manipulations came about. They want their vehicles put right as soon as possible.
“Our second priority will be establishing the truth with internal auditing. When we uncovered implausabilities inside the CO2 emissions in November, the fact in which we went public at an early stage, demonstrates thatt we are willing to be as transparent as possible.”
1040 Matthias Müller re-iterates his 5 point plan first presented back in October. He says in which Volkswagen will learn coming from its past mistakes, in order to restore “VW’s excellent past reputation.”
1039 With in which, Mr. Pötsch hands over to Matthias Müller.
1038 Volkswagen will Discharge real-world emissions figures inside the future, in addition to also its emissions tests will be verified by third parties. “We need the courage to be more honest,” says Pötsch.
1036 “We know in which the CO2 issue has been a cause of considerable concern for many of our customers” says Pötsch. He also reiterates in which any change in taxes will be payed for by Volkswagen.
1034 With regards to Audi’s V6 engine, which has been called into question inside the US, Pötsch says: “There will be one fundamental difference. The crux for EA189 engine will be in which the vehicle had two different exhaust strategies – one for the road in addition to also one for the test bench. in which will be not the case for Audi’s V6 – the warm up strategies are identical on road in addition to also the test bench. One of the devices fitted could be considered forbidden inside the US, although we will be offering a solution as swiftly as possible, in addition to also I might like to pull out in which in which affects around 100,000 units, so the idea will be manageable.”
1033 The manipulation of NOx levels was carried out “inside the mistaken belief the idea might help customers” says Pötsch. “With hindsight in which all sounds a little banal although in which will be perhaps why we find the whole thing so painful – not just because decisions were wrong although also because the priorities on which they were founded go against the VW Group values in addition to also those of the vast number of 0,000 employees.”
1032 With regards to the NOx issue, Pötsch says: “We are not talking about a one-off mistake although a chain of mistakes in which wasn’t interrupted. Looking back we have to accept the developers couldn’t find a way to meet tougher US NOx limits by permissible means – or at least which fitted the budget in addition to also timeframe they had been given. So software was fitted to manipulate NOX levels on a test bench.”
1030 Interestingly, Pötsch says in which despite around 2000 employees being informed to keep track of their data, the company maintains in which the manipulation of diesel engine software was the result of only a few individuals.
1027 Volkswagen says the idea will also be upgrading its the idea systems, doing the idea possible for the firm to track individuals in addition to also events more closely.
1025 Volkswagen’s internal audit uncovered “in which procedural problems encouraged misconduct,” says Pötsch. “Our engine control units were not suitable for preventing the software in question. Remedial measures include structuring processes better – for example, the belt in addition to also braces principle will be applied to developing ECUs, in addition to also approval processes will include more binding requirements. We cannot control individuals, although in future the idea will be much harder to bypass the rules.”
1022 Pötsch says in which the NOX issue will be partly the result of “individual misconduct” by employees within the company, as well as flaws in VW Group’s processes in addition to also an “attitude in some units of the company in which tolerated breaches of rules.”
1020 According to Pötsch, the full results of the investigation will be presented at VW’s Annual General Meeting in April 2016.
1018 Pötsch outlines the main questions the investigation will be focussing on: “Exactly what happened in addition to also when, where regulations in addition to also laws were broken in addition to also which ones, to what extent did our internal processes encourage in which, who will be responsible for the misconduct – directly in addition to also overall – in addition to also finally how do we ensure nothing like in which happens ever again.”
In total, 450 internal in addition to also external investigators are working on the investigation – a sign of how seriously Volkswagen will be taking the scandal.
1016 Pötsch says: “As internal source drew attention to CO2 issues in addition to also in which was immediately in addition to also proactively communicated. We announced up to 800,000 vehicles could be affected. Slight deviations were only found for a very tiny number of vehicles which will at in which point be adjusted in normal procedure of customers. in which will be not bad news for customers.” He also confirms in which the investigation to find those responsible for the scandal will be ongoing.
1014 Recapping on what has been revealed so far, Pötsch says: “We are dealing with two very different issues, The first concerns up to 11 million of our diesels fitted using a sosftware programme in which influenced NOx emissions. The second issue relates to CO2 emissions in addition to also related fuel consumption issues.”
1012 Pötsch re-iterates in which the VW Group will become less centralised in future, saying: “the supervisory board has taken many decisions to move swiftly forward, including a fresh management structure to decentralise the VW Group board so the idea will be fresher in addition to also more dynamic so the Group can manage its huge potential even more effectively.
“We’ve also speeded up staff realignment within the group to effectively make adjustments, recruiting fresh people in addition to also giving some of the best minds inside the Group fresh opportunities.”
1010 Autocar deputy editor Mark Tisshaw will be also watching the press conference. He says: “Hans Dieter Potsch regrets losing the trust of politicians. A not bad illustration of how bad in which scandal will be: you genuinely have to go some to lose trust of politicians…”
1008 An apology will be issued here straight away, as Mr. Pötsch says in which Volkswagen will learn “form our mistakes in addition to also can ensure something like in which nothing happens again.”
1006 Mr. Pötsch continues: “We’re all not only deeply shocked by the events although these events have also put the group in a very difficult situation. We’re here to update you as to where we stand as to overcoming in which crisis, in addition to also how the VW group will be driving its renewal forward.”
1005 Mr. Pötsch begins by saying: “I’m not giving away secrets when I say the past 2.5 months are not something anyone here has ever experienced. Noone here might have imagined a company where so many people give their best day after day in addition to also could end up in a situation like throne we’ve experienced.”
1002 The press conference will run in two blocks today. “clarification in addition to also investigations with Mr. Pötsch in addition to also then Mr. Müller will details customer solutions in addition to also the fresh orientation of the company.”
1000 The press conference will be at in which point starting.
0957 The Volkswagen press conference will be due to start very shotly. Speaking will by Chairman of the Supervisory Board of Volkswagen AG Hans Dieter Pötsch, in addition to also Volkswagen Group CEO Matthias Müller.
0954 Yesterday, the idea was revealed in which Volkswagen’s planned concept for the Consumer Electronics Show in Las Vegas next month will take the form of an electric Microbus. The concept will preview a planned return for the vehicle, which will be expected in 2017.
0952 Last month, Volkswagen also admitted in which its 3.0-litre diesel engines were also affected by the scandal – potentially affecting another 85,000 vehicles inside the US.
0950 In addition to the fixes already announced, Volkswagen has presented its fix for the 1.2-litre EA189 engine to the KBA authority in Germany. The alterations needed for in which engine could well be detailed today.
0946 Volkswagen has already detailed some of the fixes the idea will use to bring the EA189 diesel engine into line with current emissions legislation. Both 1.6-litre in addition to also 2.0-litre versions of the engine require a software fix, although 1.6-litre versions will also have a fresh mesh placed around an air mass sensor inside the engine.
0943 Interestingly, Bugatti’s upcoming Chiron will be seen as vital to the future of the group. Bugatti boss Wolfgang Dürheimer recently confirmed the Chiron might be seen for once at the Geneva motor show in March, in addition to also late-stage prototypes have given a not bad indication of how the idea will look.
0939 As part of its group realignment Volkswagen will be known to be cutting back on any fresh style not seen as being vital to the group’s future. Although a next-generation type of the Phaeton has been confirmed, the idea has been delayed until at least 2020.
0934 The emissions scandal has widened in recent weeks with fresh revelations regarding false CO2 readings in some vehicles. Yesterday, Volkswagen confirmed in which nine of its cars were affected, while Audi in addition to also Skoda said in which none of their cars were affected. Get the latest here.
0930 Welcome to Autocar’s live coverage of Volkswagen’s press conference today. The press conference will outline both the technical fixes used to rectify diesel engines inside the emissions scandal, in addition to also also provide an update on the group’s realignment.
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