VW halts sales in EU of diesels with scandal-hit engine

AP News
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Posted: Oct 21, 2015 11:14 AM
VW halts sales in EU of diesels with scandal-hit engine

BERLIN (AP) — Volkswagen has stopped sales in the 28-country European Union of the remaining new cars that contain the diesel engine fitted with the software that was used to cheat on U.S. emissions tests.

The company on Wednesday confirmed a report in the weekly Automobilwoche that it has halted sales of as-yet unregistered cars with the EA 189 engine that are still with dealers, or in storage. It said the measure affects a "very limited," though unspecified, number of vehicles.

More recent models with engines in the "euro 6" emissions category aren't affected by the scandal.

Switzerland, which isn't a member of the EU but has close trading ties with the bloc, last month banned sales of new Volkswagen cars with the engine that is affected.

Last week, German authorities ordered a recall of all Volkswagen cars fitted with the software currently on the road, a decision that will affect 8.5 million VW diesel vehicles across the EU.

The long-term economic fallout from the scandal for the company and its employees remains unclear.

During the 2008-9 financial crisis, many German companies used government-subsidized short-time work programs allowing employers to reduce production without cutting their workforce.

But following a visit to Volkswagen's Wolfsburg plant Wednesday with the governor of Lower Saxony state, a minority shareholder, new CEO Matthias Mueller said that "at the moment we have no grounds even to consider short-time work," news agency dpa reported.