VW sales and market share in the EU dipped in October 2015, suggesting that the emissions scandal might have had an impact.
Volkswagen Group’s total EU sales were 0.5% down from October 2014, while market share slipped to 24.9% from 25.37%.
The data from the Association of European Carmakers (ACEA) also showed a slowdown in EU growth as a whole.
Just more than 1.1 million cars were sold in the EU last month, up 2.9% on last year but 9.8% down on September.
Analysts suggested that buyers may been put off purchases while they await the outcome of investigations into the VW scandal, in which it was discovered that Europe’s largest automaker was falsifying emissions tests.
VW’s mass market brands suffered falls in sales last month, with Seat sales down 11.4%, Skoda’s down 2.6%, and the carmaker’s own-brand vehicles down 0.2%.
However, premium brands Audi and Porsche recorded healthy growth in the EU, with sales last month rising 4.1% and 13.9% respectively.
For the first 10 months of the year, EU new registrations were up by 8.2% to 11.523 million vehicles.
According to Germany’s transport minister, around 98,000 VW petrol vehicles are caught up in the automaker’s latest emissions scandal.
That follows an admission by VW that it had found “irregularities” in CO2 emissions levels that could affect 800,000 vehicles.
It came to light as a result of an internal investigation by the firm following the diesel emissions scandal.
On November 3, VW admitted that an internal investigation had revealed that carbon dioxide emissions and fuel consumption were understated during standards tests on about 800,000 cars.
The company said the issue mainly affected diesel cars.
However, on November 4, Germany’s Transport Minister Alexander Dobrindt told the country’s parliament: “Today we were told that among the affected vehicles are 98,000 petrol vehicles”.
VW, Skoda, Audi and Seat vehicles could be affected and the company estimates the CO2 problem could cost it about €2 billion.
Volkswagen had already set aside €6.7 billion to meet the cost of the initial emissions scandal.
News of the issue with CO2 emissions sent VW shares down by 5.6% on November 4.
The company’s shares have lost about a third of their value since September, when the scandal first broke.
It came to light after the US Environmental Protection Agency (EPA) found VW software had detected when vehicles were undergoing emissions tests, and altered the way they operated to give more favorable results.
On November 2, the EPA also alleged that VW had fitted nitrogen oxide defeat devices on 3.0 liter diesel engines used in Porsche, Audi and VW vehicles – a claim VW denied.
Porsche also denied the allegations, but its North American division announced it is discontinuing sales of Porsche Cayenne diesel sport utility vehicles until further notice.
The carmaker is recalling 11 million diesel vehicles worldwide that were fitted with the software that circumvented tests for emissions of nitrogen oxide.
That recall is for cars with variants of the EA 189 diesel engine built to the “Euro 5” emissions standard.
Meanwhile, VW is recalling 92,000 cars in the US over a mechanical problem that could affect vehicles’ brakes.
The German carmaker said part of the camshaft could shear off, causing loss of vacuum in the power brakes, which could lengthen stopping distances.
Today’s recall includes Beetle, Golf, Jetta and Passat models from 2015 and 2016. The cars have 1.8 liter and 2 liter turbocharged petrol engines.
VW discovered the problem after getting reports of camshaft failures. A fix is expected by the end of March.
The VW scandal widens as the automaker says it has found “irregularities” in carbon dioxide emissions levels, which could affect around 800,000 cars in Europe.
Volkswagen said the issue, which it came across while investigating diesel emissions, could cost about €2 billion.
Brands including VW, Audi, Skoda and Seat could be affected.
The issue mainly affects diesels, but could also include petrol models.
CO2 is a greenhouse gas, as opposed to the NOx involved in earlier allegations, which is a pollutant that causes lung disease.
The so-called irregularities that have now been found relate to the way in which CO2 emissions and fuel consumption were measured during the technical approval process for some models.
VW has not said whether or not it believes those irregularities were caused by deliberate action and it also has not specified which models are affected.
The company’s CEO Matthias Muller said: “From the very start I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth.”
The company’s board will talk to regulators about the consequences of its discovery, VW said in a statement, adding that “the safety of the vehicles is in no way compromised”.
The supervisory board issued a separate statement saying it was “deeply concerned” and promising “to ensure swift and meticulous clarification”.
The latest setback comes a day after US authorities accused VW of fitting nitrogen oxide defeat devices on its larger 3.0 liter diesel vehicles – charges which VW denied.
VW is already beset by scandal after the EPA discovered that some of its diesel vehicles were fitted with software that detected when they were undergoing emissions tests and changed the way they operated.
The so-called defeat device is understood to be in 11 million vehicles worldwide.
Earlier, it was announced that VW’s sales in the US had risen in October, despite the scandal.
According to the Environmental Protection Agency (EPA), VW cars with bigger diesel engines also contained software devices designed to cheat in emissions tests.
Porsche, Audi and VW cars are all included in this new investigation, which affects at least 10,000 vehicles.
The EPA said that cars with 3.0 liter engines from the years 2014 to 2016 were affected.
However, VW denies the vehicles have software designed to cheat tests.
Instead the automaker says that cars with the 3.0 liter diesel V6 engines “had a software function which had not been adequately described in the application process”.
VW said it was cooperating with the EPA to “clarify the matter”.
“Volkswagen AG wishes to emphasize that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner,” the company said in a statement.
Meanwhile, Porsche said it was “surprised” by the EPA’s allegations.
Photo Reuters
“Until this notice, all of our information was that the Porsche Cayenne diesel is fully compliant,” it said in a statement.
The EPA says the investigation is ongoing.
“VW has once again failed its obligation to comply with the law that protects clean air for all Americans,” said Cynthia Giles, assistant administrator at the EPA’s enforcement unit.
The EPA identified these diesel models as containing software aimed at cheating tests: 2014 VW Touareg; 2015 Porsche Cayenne; 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5.
In early September, VW admitted to the EPA that cars from the model years 2009 to 2015 contained software designed to cheat emissions tests.
It said that 11 million cars were affected.
That prompted US regulators to run further tests designed to detect such defeat devices and led to today’s announcement from the EPA.
“These tests have raised serious concerns about the presence of defeat devices on additional VW, Audi and Porsche vehicles. Today we are requiring VW Group to address these issues. This is a very serious public health matter,” Cynthia Giles said.
Regulators all over the world are now looking at VW’s diesel cars and the company is also facing criminal investigations.
State and federal prosecutors in the US have announced criminal investigations and German prosecutors are looking into the scandal.
VW CEO Martin Winterkorn resigned in late September as the scale of the scandal emerged.
At the time Martin Winterkorn said he was “not aware of any wrongdoing on my part” but was acting in the interest of the company.
Last month Volkswagen reported its first quarterly loss for at least 15 years after taking a big charge to cover the costs of the scandal.
VW said it had set aside €6.7 billion ($7.4 billion) to cover costs related to emissions cheating, which left it with a €2.52 billion pre-tax loss for the third quarter of the year.
Many analysts expect that VW will have to set aside more money to cover the recall of cars, penalties and lawsuits.
VW has reported a €3.48 billion operating loss for Q3 of 2015, and a €2.52 billion pre-tax loss triggered by its emissions scandal.
The German automaker has taken a charge of €6.7 billion ($7.4 billion) to cover the costs of the scandal.
In September, Volkswagen admitted installing software designed to cheat emissions tests in 11 million of its diesel cars worldwide.
VW CEO and chairman of the Board of Management, Matthias Müller, said: “The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear. We will do everything in our power to win back the trust we have lost.”
The company said it expects profits for the full year to be “down significantly” as a result of the costs of dealing with the emissions scandal, but it said that it is still forecasting a rise of up to 4% in sales revenue.
Meanwhile VW has started retrenching and announced earlier this month it would reduce its research and development budget. In the last three months it has reduced R&D by over €1 billion.
Toyota has overtaken VW in global vehicle sales after releasing figures for the first nine months of 2015.
The Japanese automaker sold 7.5 million in the first three quarters of 2015, beating VW’s 7.43 million and General Motors’ 7.2 million.
After six months of 2015, VW was ahead of Toyota, in pole position for the first time.
VW’s emissions scandal emerged towards the end of September.
The discovery of software that was able to mislead emissions tests on diesel cars may have more effect on VW’s sales in the remainder of the year.
Toyota’s sales for the first nine months were 1.5% below the level at the same stage last year.
Toyota first overtook GM to take the top slot in 2008 and has kept it every year since, except 2011 when GM was the top seller after a tsunami in north-eastern Japan disrupted Toyota’s production.
Separately, there was relief for General Motors on October 25 when it reached an agreement with the United Auto Workers union, averting a threatened strike.
Details of the four-year labor deal were not released. It will now go to a vote of UAW leaders and then the union’s 52,700 workers at GM.
“We believe that this agreement will present stable long-term significant wage gains and job security commitments to UAW members now and in the future,” said UAW president Dennis Williams.
The union had threatened that it would terminate its existing contract at midnight Eastern time on October 25, meaning there could have been a strike.
VW has announced it is looking into more of its diesel engines to see whether they also contain software used to manipulate emissions test data.
The German automaker has been embroiled in a scandal over emissions test rigging on its EA 189 engines.
VW is now looking into older versions of EA 288 engines, although versions sold in Europe are not affected.
Last month, VW said that 11 million diesel cars were affected by the scandal, first uncovered by the US regulator, the Environmental Protection Agency (EPA).
The EPA discovered that certain engines were fitted with a cheat-device that could detect when the car was being tested and reduced emissions to improve results.
Volkswagen had previously said that the software was installed on cars with variants of the EA 189 diesel engine built to the “Euro 5” emissions standard.
VW is now checking whether models with the EA 288 diesel motor built to the same emissions standard may also have the software.
Newer EA 288 cars built to the “Euro 6” standard are said not to be affected.
Criminal investigations have been launched in Germany, France and Italy.
VW has set aside €6.5 billion to cover the costs of the scandal but many analysts expect this will not be enough.
Volkswagen’s new CEO Matthias Muller has said the automaker can shine again in two to three years.
Addressing the company’s top managers on October 15, Matthias Muller said VW needed to become leaner and take decisions more rapidly.
The comments come as VW said it would recall 8.5 million cars in Europe as a result of the diesel emissions scandal.
The move was prompted by Germany’s automotive watchdog, which had earlier told VW to recall 2.4 million vehicles in the country.
German media reports suggest the KBA had rejected VW’s proposals that car owners could voluntarily bring their cars in for repair.
VW gave no details of the recall and said it would contact individual customers directly.
It added that it was working on solutions to fix the recalled cars “at full speed”.
Matthias Muller took over as VW’s chief executive last month when the previous head, Martin Winterkorn, stepped down as a result of the scandal.
He told managers on October 15: “We will significantly streamline structures, processes and (decision-making) bodies. We must become leaner and take decisions more rapidly.”
“Our competitors are only waiting for us to fall behind on technology matters because we are so preoccupied with ourselves. But we won’t let that happen,” Matthias Muller added.
Meanwhile, Italian police have raided VW offices in Verona and Lamborghini offices in Bologna.
Reports suggest Italian prosecutors are investigating alleged commercial fraud.
Last month, authorities in the US discovered some VW diesel cars had been fitted with a device to cheat emissions tests. VW subsequently admitted that up to 11 million cars worldwide could have the device fitted.
Volkswagen has launched a thorough investigation into the scandal, but new chairman Hans Dieter Poetsch has warned that answers would take “some time”.
The company has set aside €6.5 billion ($7.4 billion) to cover the costs of the scandal, but some experts believe the final bill could be much higher.
VW shares recovered slightly last week but are still down almost 20% since the scandal broke in mid-September.
Separately, Winfried Vahland, who was tipped to become VW’s North America boss, has resigned.
VW said Winfried Vahland was leaving because of “differing views on the organization of the new group region”.
VW has announced it will recall 8.5 million vehicles in Europe as a result of the diesel emissions scandal.
The move was prompted by Germany’s automotive watchdog (KBA), which earlier told Volkawagen to recall 2.4 million domestic cars.
German media reports suggest the KBA earlier rejected VW’s proposals that car owners could voluntarily bring their cars in for repair.
Meanwhile, Italian police have raided VW offices in Verona and Lamborghini offices in Bologna.
Reports suggest Italian prosecutors are investigating alleged commercial fraud.
Separately, the man tipped to become VW’s North America boss has resigned.
VW said Winfried Vahland was leaving because of “differing views on the organization of the new group region”.
The automaker gave no details of the recall and said it would contact individual customers directly.
VW added that it was working on solutions to fix the recalled cars “at full speed”.
Last month, authorities in the US discovered some VW diesel cars had been fitted with a device to cheat emissions tests. VW subsequently admitted that up to 11 million cars worldwide could have the device fitted.
VW has launched a thorough investigation into the scandal, but new chairman Hans Dieter Poetsch has warned that answers would take “some time”.
The company has set aside €6.5 billion ($7.4 billion) to cover the costs of the scandal, but some experts believe the final bill could be much higher.
VW shares recovered slightly last week but are still down almost 20% since the scandal broke in mid-September.
Germany’s automotive watchdog, the KBA, has ordered VW to recall 2.4 million vehicles in the country as a result of the diesel emissions scandal.
According to local media reports, the KBA earlier rejected VW’s proposals that car owners could voluntarily bring their cars in for repair.
Meanwhile, Italian police have raided VW offices in Verona and Lamborghini offices in Bologna.
Reports suggest Italian prosecutors are investigating alleged commercial fraud.
Separately, the man tipped to become VW’s North America boss has resigned.
Volkswagen said Winfried Vahland was leaving because of “differing views on the organization of the new group region”.
Last month, authorities in the US discovered some VW diesel cars had been fitted with a device to cheat emissions tests. The automaker subsequently admitted that up to 11 million cars worldwide could have the device fitted.
VW has launched a thorough investigation into the scandal, but new chairman Hans Dieter Poetsch has warned that answers would take “some time”.
The company has set aside €6.5 billion ($7.4 billion) to cover the costs of the scandal, but some experts believe the final bill could be much higher.
VW shares recovered slightly last week but are still down almost 20% since the scandal broke in mid-September.
VW will cut investment by €1 billion ($1.1 billion) a year as a result of the growing scandal over cheating on emissions tests.
Volkswagen said efficiency and technology would be the company’s watchwords as it “repositioned itself for the future”.
The automaker added that all new diesel cars would be fitted with the “best environmental technology”.
There will also be greater focus on hybrid and electric cars.
“We are becoming more efficient, we are giving our product range and our core technologies a new focus, and we are creating room for forward-looking technologies by speeding up the efficiency program,” said Chairman of the Volkswagen Passenger Cars Dr. Herbert Diess.
The automaker said it would now be fitting the kinds of clean diesel technologies needed to meet stricter US standards across all its cars in both the US and Europe.
VW also revealed that its flagship Phaeton model would in the future be purely electric, capable of driving long distances on a single charge.
European Investment Bank President Werner Hoyer has told the German media that the EU bank could recall loans it gave to VW.
The EIB will examine whether Volkswagen used any loans from the European Union to cheat on emissions tests for diesel vehicles and could demand money back.
In an interview with Sueddeutsche Zeitung, Werner Hoyer said that the EIB gave loans to the German automaker for things like the development of low emissions engines.
He said the loans could be recalled in the wake of VW’s emissions cheating scandal.
The newspaper reported that about €1.8 billion of those loans are still outstanding.
Werner Hoyer is quoted as saying that the EIB had granted loans worth around €4.6 billion to VW since 1990.
Photo EIB
“The EIB could have taken a hit [from the emissions scandal] because we have to fulfill certain climate targets with our loans,” the Sueddeutsche Zeitung quoted Werner Hoyer as saying.
The EIB president was attending the IMF meeting in Lima, Peru.
Werner Hoyer added that the EIB would conduct “very thorough investigations” into what VW used the funds for.
He told reporters that if he found that the loans were used for purposes other than intended, the EIB would have to “ask ourselves whether we have to demand loans back”.
Werner Hoyer also said he was “very disappointed” by Volkswagen, adding the EIB’s relationship with the carmaker would be damaged by the scandal.
VW admitted that about 11 million of its vehicles had been fitted with a “defeat device” – a piece of software that duped tests into showing that VW engines emitted fewer emissions than they really did.
Werner Hoyer’s comments come days after VW USA CEO Michael Horn faced a Congress panel to answer questions about the scandal, which has prompted several countries to launch their own investigations into the automaker.
Volkswagen USA CEO Michael Horn has made a “sincere apology” for installing “defeat devices” to cheat emissions tests on the automaker’s diesel cars.
Michael Horn said the events were “deeply troubling”.
He added: “I did not think that something like this was possible at the Volkswagen group.
“We have broken the trust of our customers, dealerships, employees as well as the public and the regulators.”
Michael Horn was giving evidence before a Congressional committee.
He said: “Let me be very clear: we at Volkswagen take full responsibility for our actions and we are working with all the relevant authorities in a cooperative way.”
Michael Horn said he was told about a “possible emissions non-compliance” in the spring of 2014.
However, he said he first learned about so called defeat devices being installed on VW diesel cars to manipulate emissions tests at the beginning of September, just before the scandal was made public.
Meanwhile, German public prosecutors have searched Volkswagen’s Wolfsburg headquarters as part of their investigation into the emissions scandal.
The prosecutor’s office said they were looking for data linked to the defeat devices.
German prosecutors launched their investigation into the scandal last week after receiving about a dozen criminal complaints from citizens and one from VW itself.
They say they are trying to find out who was responsible for the alleged manipulation and how it was carried out.
Michael Horn said he was told about problems with VW’s diesel cars meeting US emissions tests after the publication of a study by West Virginia University.
“I was informed that EPA [Environmental Protection Agency] regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include <<defeat device>> testing or analysis,” he said.
He told the members of the committee: “I had no idea what a defeat device was or that Volkswagen used them.”
Michael Horn said in the written evidence it was not until September 3, 2015, that Volkswagen told US authorities about the “defeat device” in emissions software in diesel vehicles for the model years 2009 to 2015.
The software allowed a vehicle to recognize whether it was being driven on the road or running in a test laboratory, and turn engine emissions controls on or off.
He said the company took full responsibility for its actions and was co-operating with all relevant authorities.
Michael Horn gave evidence to the House Energy committee and Commerce subcommittee on oversight and investigations before being questioned by the politicians about the scandal, which affects half a million cars in the US.
Michael Horn, the CEO and president of Volkswagen Group of America, has admitted he was aware early last year of the emissions cheating affecting millions of the company’s vehicles.
The VW US boss said he was told about “possible emissions non-compliance” in the spring of 2014.
The revelation was made in testimony due to be presented to a committee of the House of Representatives investigating the scandal on October 8.
Michael Horn said he was told after a study by West Virginia University was published.
“I was informed that EPA [Environmental Protection Agency] regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include ‘defeat device’ testing or analysis,” he said.
“I was also informed that the company engineers would work with the agencies to resolve the issue.”
Michael Horn said in the written evidence it was not until September 3, 2015, that VW told US authorities about the “defeat device” in emissions software in diesel vehicles for the model years 2009 to 2015.
The software allowed a vehicle to recognize whether it was being driven on the road or running in a test laboratory, and turn engine emissions controls on or off.
Michael Horn said the events had been “deeply troubling”, adding: “I did not think that something like this was possible at the Volkswagen Group.
“We have broken the trust of our customers, dealerships, and employees, as well as the public and regulators.”
He said the company took full responsibility for its actions and was co-operating with all relevant authorities.
“Responsible parties will be identified and held accountable,” Michael Horn said.
As well as striving to rebuild the automaker’s reputation, the priority was finding remedies for the three groups of vehicles affected, he said.
Michael Horn will give evidence to the House Energy committee and Commerce subcommittee on oversight and investigations before being questioned by the politicians about the scandal, which affects half a million cars in the US.
VW on October 7 appointed former finance chief Hans Dieter Poetsch as its new chairman, following a board meeting to discuss the emissions scandal.
Hans Dieter Poetsch has been appointed as VW’s new chairman, following a board meeting to discuss the emissions scandal.
Former VW finance chief said it would be “some time” before the carmaker could uncover the details of the emissions test cheating.
Earlier, the automaker said it expected to start a recall of cars affected by the scandal in January 2016.
All affected cars will be fixed by the end of 2016, VW CEO Matthias Muller told German newspaper Frankfurter Allgemeine Zeitung.
Only a few employees have been involved in the scandal, Matthias Muller added in the interview.
In his first pronouncement as chairman, Hans Dieter Poetsch said the company’s internal inquiry into the scandal would take time.
“Nobody is served by speculation or vague, preliminary progress reports,” he said.
“Therefore it will take some time until we have factual and reliable results and can provide you with comprehensive information,” Hans Dieter Poetsch added, before declining to take any questions.
VW has said emissions test-cheating software is present in 11 million diesel vehicles.
The company said it would also look into its various brands and models, singling out Bugatti, its supercar marque.
Earlier, Mathias Muller told employees at VW’s Wolfsburg home plant in Germany the company is facing changes that “will not be painless”.
All investments that were not deemed absolutely necessary would be abandoned or delayed, he said.
Technical solutions were “within view” and the firm would do everything it could to keep jobs secure, he added.
Future investment in plant, technology and vehicles would be put “under scrutiny”.
“We will do everything to ensure that Volkswagen will stand for good and secure jobs in the future,” he added.
VW has set aside €6.5 billion to cover the cost of the scandal, but analysts say the final bill could be much higher, with potential regulatory fines in the US, class action lawsuits and the cost of fixing the cars.
Italian authorities have opened an inquiry into Volkswagen over the rigging of emissions tests.
Italy’s competition watchdog said it had received several complaints from consumer groups against VW.
Earlier, the Paris prosecutor told Reuters it was investigating suspicions of “aggravated deception”.
Last month VW admitted that 11 million of its vehicles were fitted with devices that allowed them to cheat emissions tests.
VW shares fell 4.5% to a four-year-low on October 2, adding to a 44% plunge since the scandal began.
The German automaker faces fines of up to $18 billion in the US and has already put aside €6.5 billion to cover the cost of the scandal.
“Consumers may have been misled in their purchasing decisions by the claims used by Volkswagen on emissions,” Italy’s competition authority said.
The investigation relates to cars sold between 2009 and 2015 under the VW, Audi, Seat and Skoda brands.
VW has said 650,000 of its vehicles in Italy were equipped with the cheat software and that it would begin to inform owners.
Separately, Swiss road authorities put a ban on the sale of new VW diesel cars, as well as imported used vehicles.
That follows news that UK sales of 4,000 vehicles, including Skoda, Audi and Seat brands, thought to be fitted with the cheat device, had been suspended.
However, UK transport authorities said that customers who had unwittingly bought VW cars with the defeat device would not face higher motor tax.
UK motor tax is partly based on the amount of emission released by a vehicle.
In the United States, VW has also stopped the sale of all new diesel cars.
The European Consumer Organization has written an open letter to new VW CEO Matthias Muller, urging the company to take quick action to restore consumer trust.
Its director Monique Goyens wrote: “VW’s actions have deeply shaken the trust of consumers in their cars, if not in an entire industry. Millions of car owners have truck-loads of questions about what this sham means for their own vehicle. We want VW to come clean and rebuild confidence with concrete steps.”
France has opened an inquiry into Volkswagen over the rigging of emission tests.
The Paris prosecutor said it was investigating suspicions of “aggravated deception”.
VW admitted that 11 million of its vehicles were fitted with devices which allowed them to cheat emissions tests.
The automaker faces fines of up to $18 billion in the US and has already put aside $7.8 billion to pay for the scandal.
On October 2, Swiss road authorities put a ban on the sale of new VW diesel cars, as well as used imported ones.
That follows news that in the UK, sales would be suspended of 4,000 vehicles, including Skoda, Audi and Seat brands, thought to be fitted with the cheat device.
In the US, VW has also stopped the sale of all new diesel cars.
About 11 million VW vehicles worldwide have diesel engines with software “irregularities”.
The automaker plans to set aside 6.5 bn euros ($7.3 bn) in Q3 2015 to cover the costs of addressing the issue. The amount of provisions it needs could still change as the investigation continues, VW said.
United States: Scandal emerged following findings by the Environmental Protection Agency (EPA). Department of Justice and New York regulators have launched criminal investigations
Germany: Transport Ministry to send fact-finding committee to Volkswagen
Canada: Environmental Agency investigating some 100,000 Volkswagen and Audi diesel cars
Switzerland: Task force set up to investigate. Switzerland has temporarily banned the sale of VW diesel-engine models which could have devices capable of tricking emission tests.
Italy: Spot checks to be carried out on at least 1,000 diesel vehicles, transport minister says
United Kingdom: Vehicle Certification Agency to re-run lab tests and compare with “real-world” driving emissions
France: Random checks on 100 diesel cars aimed at “ensuring the absence of fraud”, says Environment Minister Segolene Royal
South Korea: Environment Ministry to investigate 4-5,000 Jetta, Golf and Audi A3 vehicles, could extend to all German diesel cars if problems found
The sale of VW diesel-engine models which could have devices capable of tricking emission tests has been temporarily halted in Switzerland.
The move could affect 180,000 cars – not yet sold or registered – in the Euro5 emission category.
This comes after VW, the world’s largest automaker, admitted cheating on emissions tests in the US.
Meanwhile, Matthias Muller has been named new VW CEO in the wake of the scandal.
He succeeds Martin Winterkorn, who resigned on September 23.
The row erupted after it emerged that some VW cars being sold in the US had devices in diesel engines that could detect when they were being tested, changing the engine performance to improve results.
The ban was announced by the Swiss Federal Roads office on September 25.
In a statement, it said vehicles that have 1.2-litre 1.6-litre and 2.0-litre diesel engines of VW models – including VW’s Audi, Seat and Skoda brands – could be affected.
The ban does not apply to vehicles that are already in circulation or cars with Euro6 emission category engines.
The Swiss authorities have also set up a taskforce to fully investigate the issue.
After his appointment, Matthias Muller said restoring the company’s reputation was his top priority.
“My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation.”
He also announced sweeping changes to the way the company was run, including handing greater autonomy to regional divisions.
Matthias Muller said he would tighten up procedures at the company: “At no point was the safety of our customers in danger. We will now have even stricter compliance. Our objective is that the people continue to use and drive our vehicles with confidence and pleasure. That’s 80 million people driving our cars worldwide.”
The EPA’s findings of the scandal cover 482,000 cars in the US only, including the VW-manufactured Audi A3, and the VW brands Jetta, Beetle, Golf and Passat.
But VW has admitted that about 11 million cars worldwide are fitted with the so-called “defeat device” – 2.8 million of them in Germany – and further costly recalls and refits are possible.
Half of VW’s sales in Europe – the company’s biggest market – are for diesel cars.
VW shares plunged around 30% in the days after the scandal broke.
Transport authorities in several countries have announced their own investigations.
German businessman Matthias Muller has been named as Volkswagen’s new CEO in the wake of the scandal of rigged emissions tests in diesel cars.
Matthias Muller succeeds Martin Winterkorn who resigned on September 23.
VW admitted cheating emissions tests in the US.
Some VW cars being sold in the US had devices in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results.
Matthias Muller, who has been Porsche AG CEO since 2010, said restoring VW’s reputation was his top priority: “My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation.”
He also announced sweeping changes to the way the world’s largest carmaker was run, including handing greater autonomy to regional divisions.
Matthias Muller, 62, said he would tighten up procedures at the company: “At no point was the safety of our customers in danger. We will now have even stricter compliance. Our objective is that the people continue to use and drive our vehicles with confidence and pleasure. That’s 80 million people driving our cars worldwide.”
The US’s Environmental Protection Agency’s (EPA) findings of the scandal cover 482,000 cars in the US only, including the VW-manufactured Audi A3, and the VW brands Jetta, Beetle, Golf and Passat.
The automaker has admitted that about 11 million cars worldwide are fitted with the so-called “defeat device” – 2.8 million cars in Germany – and further costly recalls and refits are possible.
Half of VW’s sales in Europe – the company’s biggest market – are for diesel cars.
VW shares plunged around 30% in the days after the scandal broke.
Transport authorities in several countries – including the UK and Germany – have announced investigations in to the scandal.
VW has admitted using the same fake emissions test in Europe as it used to falsify results in the US, Germany’s Transport Minister Alexander Dobrindt says.
It was not known how many of the 11 million vehicles affected were in Europe, Alexander Dobrindt said.
He also said other manufacturers’ vehicles would be checked.
The scandal began unfolding on September 18 when Volkswagen said it had used software in the US to provide false emission test results.
Alexander Dobrindt said he had been told vehicles with 1.6 and 2.0 liter diesel engines are “affected by the manipulations that are being talked about”.
Photo Volkswagen
VW’s Jetta, Beetle, Golf and Audi A3 models in the US from 2009 to 2015, and the Passat from 2014-15, were fitted with the devices which produced doctored results. However, diesel cars are far more popular in Europe than in the US.
Alexander Dobrindt also said random tests would be conducted on cars made by manufacturers other than VW: “It is clear that the Federal Office for Motor Traffic will not exclusively concentrate on the VW models in question but that it will also carry out random tests on vehicles made by other carmakers.”
The value of the world’s largest automaker has shrunk by around 30% since the scandal was revealed.
Separately, BMW shares dropped by 10% on reports the false tests had been used by other automakers.
BMW issued a statement denying the report, saying the “group does not manipulate or rig any emissions tests”.
“We observe the legal requirements in each country and adhere to all local testing requirements,” it continued.
Volkswagen is setting aside €6.5 billion to cover the costs of the scandal.
VW CEO Martin Winterkorn resigned following the revelation.
Martin Winterkorn said he was “shocked” by recent events and was “not aware of any wrongdoing on my part”.
VW’s supervisory board said it would announce Martin Winterkorn’s successor at a board meeting on September 25.
There has been speculation in German media that Matthias Mueller would be named as VW’s next chief executive. He is head of Porsche, which is part of the Volkswagen group of companies.
German public prosecutors are considering an investigation into VW emissions case, with US authorities also said to be planning criminal investigations.
VW CEO Martin Winterkorn has resigned after the revelation that the world’s largest automaker manipulated US diesel car emissions tests.
Martin Winterkorn said he was “shocked” by recent events and that Volkswagen needed a “fresh start”.
He added that he was “not not aware of any wrong doing on my part” but was acting in the interest of the company.
VW has already said that it is setting aside €6.5 billion to cover the costs of the scandal.
The world’s biggest carmaker admitted last week that it deceived US regulators in exhaust emissions tests by installing a device to give more positive results.
VW said later that it affected 11 million vehicles worldwide.
“I am clearing the way for a fresh start with my resignation,” Martin Winterkorn said in his statement.
He said he was “stunned” at the scale of the misconduct in the group but that he was confident that VW would overcome this “grave crisis”.
“The process of clarification and transparency must continue. This is the only way to win back trust,” he continued.
In a separate statement, VW’s supervisory board said they would announce Martin Winterkorn’s successor at a board meeting on September 25, adding that it was “expecting further personnel consequences in the next days” as a result of its own investigations.
“The internal group investigations are continuing at a high tempo,” it said.
“All participants in these proceedings that has resulted in unmeasurable harm for Volkswagen will be subject to the full consequences.”
The board also said that it would voluntarily submit a complaint to the state prosecutors.
“In the view of the Executive Committee criminal proceedings may be relevant due to the irregularities,” its statement said.
German public prosecutors have already said they are considering an investigation, with US authorities also said to be planning criminal investigations.
In addition, VW faces fines of up to $18 billion by the regulator, the Environmental Protection Agency (EPA).
VW’s shares have tumbled some 30% since the beginning of the week in response to the scandal.
At least 11 million vehicles worldwide are affected by the scandal that has erupted over Volkswagen’s rigging of US car emissions tests, the company said.
The carmaker said it was setting aside €6.5 billion to cover costs of the scandal.
VW added this would pay for “necessary service measures and other efforts to win back the trust of our customers”.
Volkswagen CEO Michael Horn has admitted it “totally screwed up” in using software to rig emissions tests.
VW shares were down more than 20% on September 22 in Frankfurt.
On September 18, the US Environmental Protection Agency (EPA) said VW diesel cars had much higher emissions than tests had suggested and that software in several diesel cars could deceive regulators.
“Volkswagen does not tolerate any kind of violation of laws whatsoever,” the carmaker said in its latest statement.
VW said provision for the scandal would be made “in the profit and loss statement in the third quarter of the current fiscal year”.
It added: “Due to the ongoing investigations, the amounts estimated may be subject to revaluation.”
French Finance Minister Michel Sapin has called for an EU inquiry, but a UK car industry spokesman said there was “no evidence” of cheating.
However, he also described current testing methods as “outdated” and said the car industry wanted an updated emissions test, “more representative of on-road conditions”.
Minister Michel Sapin said inquiries in Europe had to be conducted “at a European level”.
“We are a European market with European rules,” he told Europe 1 radio.
“It is these that have to be respected. It is these that have been violated in the United States.”
The French carmakers’ federation backed Michel Sapin’s call, saying such an inquiry would “allow us to confirm that French carmakers respect the procedures for approval in all of the countries where they operate”.
However, a European Commission spokeswoman said it was “premature to comment on whether any specific immediate surveillance measures are also necessary in Europe”.
Elsewhere, the South Korean government said it would test up to 5,000 Jetta and Golf cars, along with Audi A3s made in 2014 and 2015.
Its investigation will be expanded to all German diesel cars if issues are found.
The White House in Washington also reportedly said it was “quite concerned” about VW’s conduct.
Volkswagen was ordered to recall half a million cars in the US on September 18.
In addition to paying for the recall, VW faces fines that could add up to billions of dollars. There may also be criminal charges for VW executives.
In its latest statement, VW said it was “working at full speed to clarify irregularities” concerning what it called “a particular software used in diesel engines”.
The EPA found the “defeat device”, the device that allowed VW cars to emit less during tests than they would while driving normally, in diesel cars including the Audi A3 and the VW Jetta, Beetle, Golf and Passat models.
VW has stopped selling the relevant diesel models in the US, where diesel cars account for about a quarter of its sales.
The EPA said that the fine for each vehicle that did not comply with federal clean air rules would be up to $37,500. With 482,000 cars sold since 2008 involved in the allegations, it means the fines could reach $18 billion.
VW has ordered an external investigation, although it has not revealed who will be conducting it.
Volkswagen will “support” the German transport ministry’s investigation into the automaker’s emissions scandal, CEO Martin Winterkorn has said.
VW shares plunged more than 18% on September 21 after the Environmental Protection Agency (EPA) found that some of its cars could manipulate official emissions tests.
The EPA found that software in several diesel cars could deceive regulators.
VW was ordered to recall half a million cars in the US on September 18.
In addition to paying for the recall, VW faces fines that could add up to billions of dollars. There may also be criminal charges for VW executives.
The White House in Washington also reportedly said it was “quite concerned” about VW’s conduct.
Martin Winterkorn apologized after the scandal emerged.
“I personally am deeply sorry that we have broken the trust of our customers and the public,” he said.
He has launched an investigation into the software that allowed VW cars to emit less during tests than they would while driving normally.
The EPA found the “defeat device” in diesel cars including the Audi A3 and the VW Jetta, Beetle, Golf and Passat models.
VW has stopped selling the relevant diesel models in the US, where diesel cars account for about a quarter of sales.
The EPA said that the fine for each vehicle that did not comply with federal clean air rules would be up to $37,500. With 482,000 cars sold since 2008 involved in the allegations, it means the fines could reach $18 billion.
Volkswagen has ordered an external investigation, although it has not revealed who will be conducting it.
“We do not and will not tolerate violations of any kind of our internal rules or of the law,” Martin Winterkorn said.
The scandal comes five months after former VW chairman Ferdinand Piech left the company following disagreements with Martin Winterkorn.
“This disaster is beyond all expectations,” Ferdinand Dudenhoeffer, head of the Centre of Automotive Research at the University of Duisburg-Essen, said.
The VW board is due to meet on September 25 to decide whether to renew Martin Winterkorn’s contract until 2018, and some analysts speculated he may be on his way out.
VW had been promoting its diesel cars in the US as being better for the environment.
Class action law firm Hagens Berman is launching a suit against VW on behalf of people who bought the relevant cars.
“While Volkswagen tells consumers that its diesel cars meet California emissions standards, vehicle owners are duped into paying for vehicles that do not meet this standard and unknowingly pay more for quality they never receive,” Hagens Berman alleged.
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