Volkswagen has faced a massive fallout following the discovery of a software installed on some of its diesel cars which can cheat emission test results. Recently, the German auto manufacturer said that Audi cars which have automatic transmissions are also rigged with technologies that can distort emission test results.

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Audi, which is Volkswagen's luxury car brand, is currently facing allegations about a new software device embedded on some of its car models. The California Air Resources Board reportedly discovered this summer that older Audi models have cheating software embedded in them. The report added that the discovered Audi software has no connection to the device used by Volkswagen to heat diesel emissions test.

The California Air Resources Board discovered that when the steering wheel of certain Audi cars are not turned, just like when doing an emission test, the engine will lower down its carbon dioxide emission. The software is reportedly embedded on several Audi diesel and petrol models released in Europe for several years.

In a statement acquired by Reuters, Volkswagen said, "Audi has explained the technical backgrounds of adaptive shift programs to the Federal Motor Vehicle Authority KBA and has made available technical information. In normal use, these adaptive systems support the driver by adjusting the gear-shifting points to best adapt to each driving situation."

The Environment Protection Agency has launched an investigation into claims that some Audi cars were also rigged with software to cheat emission tests, according to The Verge.

Currently, the Environmental Protection Agency and the California Air Resources Board are working alongside Volkswagen to reach an agreement that will fix 85,000 Audi, Porsche, and Volkswagen cars that were installed with rigging devices.

Volkswagen is reportedly working with lawyers to iron out how much compensation affected car owners will receive. Volkswagen is offering to pay $5,100 to $10,000 per customer, in addition to a buyback offer.