BERLIN (Reuters) - Volkswagen's (VOWG_p.DE) admission in September it used software to cheat U.S. emissions tests has wiped billions of euros from its market value, forced out long-time CEO Martin Winterkorn, and sparked investigations and lawsuits across the world.
On Wednesday, the German carmaker said Winterkorn received information on problems with U.S. diesel emissions tests in 2014, but that the issue "did not initially receive particular attention at the management levels."
Following is Volkswagen's account of events leading up to the violation of U.S. emissions law being publicly announced by the U.S. Environmental Protection Agency on Sept. 18, 2015.
2005: VW decides to push diesel technology, already popular in Europe, in the United States by developing a new diesel engine, the EA 189.
In the ensuing period, a group of people, whose identity VW says is still being determined, decided to modify the engine management software to meet strict U.S. emissions limits. The modification was relatively small and could be done within budget and without involving superior levels of management, VW said.
May 2014: The California Air Resources Board (CARB) receives indications of irregularities from a study published by the International Council on Clean Transportation (ICCT) that shows nitrogen oxide values for two VW diesel vehicles deviated significantly between bench testing and road operation.
CARB requests explanation from Volkswagen Group of America. Over the following months, VW carries out internal verification tests.
May 23, 2014: A memo about the ICCT study is prepared for Martin Winterkorn, then group CEO, which was included in what VW calls his "extensive weekend email". VW says it has not been documented as to whether, or how much, Winterkorn took notice of the memo.
Nov. 14, 2014: Winterkorn receives another memo that contains, among other items, information on current product defects and which refers to costs of approximately 20 million euros ($22 million) for the diesel issue in North America.
December 2014: VW's U.S. unit meets with CARB and offers to recalibrate the first and second generation EA 189 diesel engines as part of regular service work that was already scheduled for December 2014.
Summer 2015: VW's Committee for Product Safety (APS) establishes a diesel task force after further tests carried out by CARB show that the work done to improve the affected engines was not sufficient to reduce nitrogen oxide emissions to an acceptable level.
VW retains U.S. law firm Kirkland & Ellis to advise VW on questions related to U.S. emissions law.