Business & Financial News

Car makers pay price for VW cheating scandal, delay in vehicle launches inevitable

Environmental regulators in the US are taking a long-look at new vehicle emissions before giving their stamp of approval, a move that is now likely to delay vehicle launches.

The normal certification process which ordinarily takes four weeks, now takes about a month longer or up to three months and automakers are being forced to delay their launches – the deferrals are feared could lead to higher development costs.

BMW, Honda, Nissan, Ford among other car manufacturers have now begun to pay a price for Volkswagen AG’s emissions cheating scandal. VW admitted in September last year that it rigged some 11 million diesel-powered vehicles worldwide with software designed to mask oxides of nitrogen emission levels in lab tests.

At least one launch by BMW’s X5 diesel which was slated for January this year has been affected due to the additional EPA tests while Nissan motor Co. has also said it is adding weeks to its prelaunch process to account for the longer EPA approval tests – and more vehicles could be delayed.

The car maker was accused of deliberately manipulating emissions to fool lab tests – a move that later prompted US and Europe as well as US Environmental Protection Agency (EPA) to begin testing to search for defeat devices used by other automakers. Extra testing began on all diesel-powered vehicles but now applies gasoline models.

The agency in partnership with other regulatory bodies has also beefed up testing regimes, and enhanced audits aimed at restoring the industry’s credibility.

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