VW proposes fixes for all three dirty diesel motors in Germany

[BERLIN] Volkswagen AG submitted fixes for all three of its dirty diesel motors in Germany, a proposal that, if approved, would provide a template for the 8.5 million cars affected by the company's cheating on emissions in Europe.

The proposals have made a positive impression on regulators, Transport Minister Alexander Dobrindt said in an e-mailed statement Monday. "We are working as quickly as possible to clear up the manipulation and allow Volkswagen to remedy it." Germany has ordered a recall, due to start in January, of 2.46 million Volkswagen cars fitted with software to cheat on diesel pollution. Monday was the deadline to provide a complete proposal for a fix to German regulators. The company said last week it already had approval for a software repair for its 2.0-litre motors and that German automotive regulator KBA had also agreed in principle to a new air filter part for the 1.6-litre engines, meaning only a repair for the smallest 1.2-litre engines remained to file for approval by Monday.

The carmaker has faced an emissions scandal on three fronts: cheating software it installed in about 11 million cars worldwide; irregular carbon dioxide ratings on about 800,000 vehicles in Europe; and additional questionable emissions software in about 85,000 VW, Audi and Porsche cars with 3.0-litre diesel engines in the US. Approval of repairs in Germany, and by extension the rest of Europe, doesn't guarantee a thumbs-up in the US, where regulators first uncovered Volkswagen's diesel deception in September.

"The most important next step will be as and when VW will conclude its internal investigations," Arndt Ellinghorst, a London-based analyst for Evercore ISI, wrote in a note Monday. A program the company set up to encourage whistle-blowers expires Monday.

The shares rose 3.8 per cent to 128.55 euros at 11:28 a.m. in Frankfurt. Volkswagen has rebounded by about 49 per cent since hitting an intraday low of 86.36 euros on Oct 5.

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