ABOUT 11M Volkswagen vehicles could be affected by the VW emissions-cheating software discovered by US authorities last week.
The German factory admitted it was setting aside £4.7bn to cover costs of the scandal.
VW shamed
- VW admit 11m vehicles worldwide implicated in emissions-cheating scandal;
- It sets aside more than £4Bn to cover costs;
- Nearly 500,000 cars recalled in US;
- US authorities estimate possible fines of $18Bn (£11.5Bn).
The US Environmental Protection Agency (EPA) found a “defeat device”, which allows 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 and has recalled nearly 500,000 vehicles so far.
The EPA said that the fine for each vehicle that did not comply with federal clean air rules would be up to $37,500 (£24,000). With 482,000 cars sold since 2008 involved in the allegations, it means the fines could reach $18bn.
The boss of Volkswagen’s US business, Michael Horn, has admitted it “totally screwed up” in using software to rig emissions tests.
The UK Department of Transport has added its voice to calls for an EU-wide investigation into the affair.
Last Friday, the EPA said VW diesel cars had emissions up to 40-times higher 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 firm said in its latest statement.
Speaking to BBC Business, Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders (SMMT), said the EU operated a “fundamentally different system” from the US, with tests performed in strict conditions and witnessed by a government-appointed independent approval agency.
“There is no evidence that manufacturers cheat the cycle,” he said. “Vehicles are removed from the production line randomly and must be standard production models, certified by the relevant authority – the UK body being the Vehicle Certification Agency, which is responsible to the Department for Transport.”
However, he also described current testing methods as “outdated” and said the car industry wanted an updated emissions test, “more representative of on-road conditions”.
Meanwhile the BVRLA’s chief executive Gerry Keaney said: “We look forward to the results of the investigation, and will be monitoring the situation to see if similar activity also took place in the UK market.
“The rental and leasing industry plays a vital role in promoting the uptake of clean vehicles, and our sector will be affected by this announcement. Our members and their customers are concerned about the implications for this potentially reaching the UK, and will want to understand what it means for the UK market.
In recent years, the UK’s tax regime has encouraged fleets to choose vehicles based on official emissions figures, and while the UK emissions test is a fundamentally different system to the US, these revelations reinforce the need for a more accurate testing regime.
“These investigations have only just begun, so we’re watching closely to see if the scope widens further to include other manufacturers and vehicles. It is difficult to comment any further about potential impacts until we have a better understanding of how governments, manufacturers and customers react.”
