As the United States opened a criminal investigation into Volkswagen, chief executive Martin Winterkorn offered his “deepest apologies” for the scandal which threatens to tarnish Germany’s pristine industrial reputation.
“I am infinitely sorry that we have disappointed people’s trust. I offer my deepest apologies to our customers, the authorities and to the public at large for our misconduct,” the 68-year-old executive said in a video statement and promised to be “ruthless” in getting to the bottom of the scandal.
The “irregularities... contradict everything that our company stands for,” Winterkorn said. “Manipulation must never again occur at Volkswagen.”
The German firm has halted all diesel vehicles sales in the United States during the US probe, which could lead to fines amounting to a maximum of more than $18 billion.
Authorities from France to South Korea also said they would investigate the affair, prompting Volkswagen to announce that it was setting aside 6.5 billion euros ($7.3 billion) in provisions for the third quarter to cover the potential costs of the scandal.
When U.S. authorities announced last week that special software on VW diesel vehicles drastically reduced output of pollutants when they were undergoing emissions tests they said it concerned nearly half a million vehicles sold in the United States.
“Further internal investigations have shown that the software concerned is also installed in other diesel vehicles,” VW said in a statement.
25 bln euros in loss
“Anomalies have shown up in around 11 million cars worldwide that are equipped with a specific engine type,” added the car manufacturer, the world’s biggest by sales in the first half of this year.
“In order to cover the necessary service and other measures to win back customer confidence, VW plans to set aside 6.5 billion euros in provisions in the third quarter. The group’s earnings targets for 2015 will be adjusted accordingly.”
The impact on the reputation of Volkswagen, whose parent company also owns brands including Audi, Skoda and Lamborghini, is hard to measure. German Chancellor Angela Merkel called on the company to show “full transparency” to clear up the matter.
Chief executive Martin Winterkorn’s job is now believed to be hanging in the balance, as senior supervisory board members were reportedly meeting to discuss his dismissal.
The German news agency DPA said the supervisory board’s six-member steering committee met late on Sept. 22, and was scheduled to reconvene again on Sept. 23. But no information has emerged about any decisions taken at the talks, DPA said.
The regional Hannoversche Allgemeine Zeitung earlier said Winterkorn had lost the confidence of major shareholders.
An AFP photographer saw cars with tinted windows entering the Volkswagen headquarters in Wolfsburg in the morning but it was impossible to say whether they were joining the board meeting.
The shockwave of the scandal has slashed VW’s market capitalization by about 25 billion euros to 51 billion euros in just two days, although Volkswagen’s share market nightmare showed the first signs of lifting on Sept. 23 as its stock steadied a little in early trade in Frankfurt, following a two-day freefall.
In addition to the environmental probe already under way, the U.S. Department of Justice has launched a criminal investigation, a source told AFP.
The investigation is being led by the US Justice Department’s environment and natural resources division, the source said, speaking on condition of anonymity and confirming media reports.
Agence France Presse
hurriyetdailynews.com
23/9/15
GR
FR
DE
ES
IT
RU
EU
Volkswagen chief executive Martin Winterkorn resigns...
ReplyDeleteVolkswagen chief executive Martin Winterkorn has resigned following the revelation that the firm manipulated US diesel car emissions tests.
Mr Winterkorn said he was "shocked" by recent events and that the firm needed a "fresh start".
He added that he was "not aware of any wrongdoing on my part" but was acting in the interest of the company.
VW has already said that it is setting aside €6.5bn (£4.7bn) 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.
The company said later that it affected 11 million vehicles worldwide......BBC
VW manipulated diesel emissions tests in Europe, says German minister...
ReplyDeleteGermany's transport minister says Volkswagen has admitted using the same fake emissions test in Europe as it used to falsify results in the US.
Alexander Dobrindt said it was not known how many of the 11 million vehicles affected were in Europe.
He also said other manufacturers' vehicles would be checked.
The scandal began unfolding on Friday when the German car giant said it had used software in the US to provide false emission test results.
Mr Dobrindt said he had been told vehicles with 1.6 and 2.0 litre diesel engines are "affected by the manipulations that are being talked about".
The company'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.....BBC
24/9/15