Embattled automaker Volkswagen AG (VW) yesterday suspended the sale of some diesel-powered cars in Australia as the fallout from its emissions-cheating software expanded.
Volkswagen Group Australia (VGA) said it met with Australian government authorities on Friday “to advise them of its strategy in Australia” to address concerns raised around the world about the technology.
“In its first step, effective immediately VGA has temporarily suspended the sale of affected vehicles fitted with 1.6 or 2-liter EA189 diesel engines,” it said in a statement.
Photo: AFP
“The suspension will remain until the emission issues are addressed in those vehicles,” it added, without naming the models of the vehicles affected.
Volkswagen has admitted that up to 11 million diesel vehicles worldwide are fitted with devices that can switch on pollution controls when they detect the car is undergoing testing.
They then switch off the controls when the car is on the road, allowing it to spew out higher levels of emissions.
The Australian development comes a week after Canberra said it would ensure that any vehicles with the so-called defeat devices could not be supplied in the country as it sought urgent clarification on how many vehicles there were involved in the growing scandal.
Estimates by Fairfax Media newspapers have suggested that more than 40,000 vehicles made by Volkswagen and Volkswagen’s top-of-the-range Audi subsidiary could be fitted with the diesel engines that contain the devices.
Audi Australia said it was also temporarily suspending the sale of affected vehicles fitted with the 2-liter EA189 diesel engine, certified according to the European emission standard EU5.
“The suspension of sales for the Audi brand relates to the Audi A4, A5 and Q5 vehicles with a 2.0 TDI engine only,” it said in a statement. “The suspension will remain until the emission issues are addressed in those vehicles.”
Audi Australia said existing customers would be contacted in coming weeks about how their cars can be retrofitted, adding that the 1.6-litre and 2-litre TDI engines certified according to the new EU6 emissions standard were not affected.
Emissions cheating devices breach Australian national safety standards and the country’s consumer watchdog has warned Volkswagen could be fined up to A$1.1 million (US$773,000) for each pollution-cheating device installed and in use in the country.
EXTRATERRITORIAL REACH: China extended its legal jurisdiction to ban some dual-use goods of Chinese origin from being sold to the US, even by third countries Beijing has set out to extend its domestic laws across international borders with a ban on selling some goods to the US that applies to companies both inside and outside China. The new export control rules are China’s first attempt to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them. In an announcement this week, China declared it is banning the sale of dual-use items to the US military and also the export to the US of materials such as gallium and germanium. Companies and people overseas would be subject to
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
TENSE TIMES: Formosa Plastics sees uncertainty surrounding the incoming Trump administration in the US, geopolitical tensions and China’s faltering economy Formosa Plastics Group (台塑集團), Taiwan’s largest industrial conglomerate, yesterday posted overall revenue of NT$118.61 billion (US$3.66 billion) for last month, marking a 7.2 percent rise from October, but a 2.5 percent fall from one year earlier. The group has mixed views about its business outlook for the current quarter and beyond, as uncertainty builds over the US power transition and geopolitical tensions. Formosa Plastics Corp (台灣塑膠), a vertically integrated supplier of plastic resins and petrochemicals, reported a monthly uptick of 15.3 percent in its revenue to NT$18.15 billion, as Typhoon Kong-rey postponed partial shipments slated for October and last month, it said. The
COLLABORATION: The operations center shows the close partnership between Taiwan and Japan in the field of semiconductors, Minister of Economic Affairs J.W. Kuo said Tokyo Electron Ltd, Asia’s biggest semiconductor equipment supplier, yesterday launched a NT$2 billion (US$61.5 million) operations center in Tainan as it aims to expand capacity and meet growing demand. Its new Taiwan Operations Center is expected to help customers release their products faster, boost production efficiency and shorten equipment repair time in a cost-effective way, the company said. The center is about a five-minute drive from the factories of its major customers such as Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) advanced 3-nanometer and 2-nanometer fabs. The operations center would have about 1,000 employees when it is fully utilized, the company