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Porsche says it found 'irregular' software as Germany recalls diesel Cayenne

BERLIN - German Transport Minister Alexander Dobrindt on Thursday announced a recall of Porsche Cayenne models equipped with 3-liter diesel engines after finding potentially illegal emissions controlling software in the vehicles. Dobrindt told reporters he was withdrawing certification for the vehicles, which will need to undergo a software update to regain legal status. Sports car maker Porsche AG is owned by Volkswagen, which in 2015 admitted to systematic manipulation of engine management software to cheat emissions tests. Porsche on Thursday said it had discovered "irregular" engine management software during an internal probe into emissions. Porsche also said it had agreed to recall the vehicles to fix the problem. "The producer will of course bear 100 percent of the costs," Dobrindt said. "There is no explanation why this software was in this vehicle." The minister said: "We have examined Porsche Cayenne vehicles of the 3 liter TDI Euro 6 Mark - during tests these vehicles deploy a so-called defense strategy, which isn't activated in real traffic." "In our view that is a kind of test recognition, which we regard as an impermissible deactivation strategy." "Even if there is a modern exhaust gas cleaning system in these vehicles, if this software is nonetheless there it is illegal, does not meet the legal requirements and needs to be removed," Dobrindt said. He also said that Porsche would quickly be in a position to bring the software into conformity with the law. Dobrindt also said there were some 7,500 vehicles of this type certified in Germany and some 22,000 certified in Europe. "We don't know how many are with dealers. These are the cars that fall under the certification ban." The Porsche Cayenne model shares components with a sister model, the Volkswagen Touareg. Asked about Volkswagen's Touareg model, Dobrindt said: "On the technical question, it is assumed that this vehicle has a similar parameter set but identical construction does not mean that the same software was used in it but it is assumed that the same software was used." He said the Transport Ministry was, however, checking that and a hearing with Volkswagen would show whether that was the case or not, adding: "The probability is high." Volkswagen CFO Frank Witter had no immediate comment about the Porsche recall on a VW earnings call also held on Thursday.

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VW suspends sales in South Korea ahead of government meeting

Volkswagen and Audi have announced they will suspend sales of 79 different models in South Korea ahead of a meeting with the country's environmental ministry. VW will halt sales starting on July 25, the same day that its officials are to sit down with the South Korean environmental ministry, which will likely punish the German company. The Wall Street Journal reports that Korea's response to the situation will likely come in the form of an outright sales ban on Volkswagen products by revoking certifications on 79 different models based on 34 different vehicle types. Affected models include the VW Golf, Jetta, and Tiguan and the Audi A3 and A6, the WSJ reports. Essentially, it looks like VW is merely trying to get out ahead of the South Korean government. If the revocation goes through, it'd likely lead to fines and a relatively large recall of around 79,000 vehicles, the WSJ reports. Despite the dreary forecast, Volkswagen reaffirmed its commitment to the South Korean market. "This decision doesn't mean that Volkswagen is pulling out of Korea, which is a very important market to us," a Korean rep for the company said in a statement. "We'll reapply for certification of our cars if the government revokes it. The process may take several months." While Volkswagen's diesel emissions testing scandal is part of the problem, South Korea is taking a harder line than a lot of other countries. Authorities indicted a Volkswagen exec on charges of submitting falsified emissions documents and noise tests last week, while separately, Korea's trade watchdog is considering criminal charges against execs, according to the WSJ. Banning VW Group sales in South Korea isn't quite as dramatic as if the company stopped sales in China, the United States, or Germany, but it's still going to sting. VW Group products (including Bentley) represented around a third of European cars imported by South Korea last year. News Source: The Wall Street JournalImage Credit: Stefan Wermuth / Reuters Government/Legal Green Audi Volkswagen Emissions vw diesel scandal