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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/sep/22/alexis-tsipras-forms-greek-cabinet-vw-emissions-business-live
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| UK calls for probe into VW scandal as Merkel seeks 'transparency' - as it happened | UK calls for probe into VW scandal as Merkel seeks 'transparency' - as it happened |
| (4 months later) | |
| 6.22pm BST | |
| 18:22 | |
| VW chief executive Martin Winterkorn has not resigned despite the pressure on him after the emissions scandal, but his fate will be decided when the car maker’s board meet on Wednesday. | VW chief executive Martin Winterkorn has not resigned despite the pressure on him after the emissions scandal, but his fate will be decided when the car maker’s board meet on Wednesday. |
| And as we reported earlier, workers representatives on the supervisory board are keen that there are “personnel consequences” and not just among the rank and file. So despite his profuse apologies, Winterkorn may yet be one of those “consequences.” | And as we reported earlier, workers representatives on the supervisory board are keen that there are “personnel consequences” and not just among the rank and file. So despite his profuse apologies, Winterkorn may yet be one of those “consequences.” |
| On that note, it’s time to close up for the evening. Thanks for all your comments, and we’ll be back tomorrow. | On that note, it’s time to close up for the evening. Thanks for all your comments, and we’ll be back tomorrow. |
| 5.47pm BST | |
| 17:47 | |
| US state attorneys general are forming a committee to probe Volkswagen over the emmissions scandal, Reuters reports quoting the New York attorney general Eric Schneiderman. | US state attorneys general are forming a committee to probe Volkswagen over the emmissions scandal, Reuters reports quoting the New York attorney general Eric Schneiderman. |
| 5.35pm BST | |
| 17:35 | |
| Helena Smith | Helena Smith |
| Away from VW for the moment, and over in Greece it looks like former finance minister Euclid Tsakalotos will take that post in the new cabinet, set to be announced later, despite suggestions earlier he may have been reluctant. Helena Smith reports: | Away from VW for the moment, and over in Greece it looks like former finance minister Euclid Tsakalotos will take that post in the new cabinet, set to be announced later, despite suggestions earlier he may have been reluctant. Helena Smith reports: |
| The Oxford-educated academic will head the ministry; Giorgos Stathakis who was also at the national economy ministry will return to his post. But perhaps the toughest job will fall to another British-trained academic, the current interim finance minister Giorgos Houliarakis. Houliarakis will be elevated to the top post of a new ministry created with the express purpose of coordinating all the government departments that will be enforcing the internationally mandated fiscal consolidation policies and structural reforms. | The Oxford-educated academic will head the ministry; Giorgos Stathakis who was also at the national economy ministry will return to his post. But perhaps the toughest job will fall to another British-trained academic, the current interim finance minister Giorgos Houliarakis. Houliarakis will be elevated to the top post of a new ministry created with the express purpose of coordinating all the government departments that will be enforcing the internationally mandated fiscal consolidation policies and structural reforms. |
| The state-run TV channel said at least six other ministers would return to their previous posts, including the foreign minister Nikos Kotzias, the health minister Panagiotis Kouromblis, the justice minister Nikos Paraskeuopoulos and Panos Kammenos who is also head of the leftists’ junior partner in government, the small right-wing, nationalist Independent Greeks party. | The state-run TV channel said at least six other ministers would return to their previous posts, including the foreign minister Nikos Kotzias, the health minister Panagiotis Kouromblis, the justice minister Nikos Paraskeuopoulos and Panos Kammenos who is also head of the leftists’ junior partner in government, the small right-wing, nationalist Independent Greeks party. |
| Yiannis Mouzalas is expected to be reappointed as migration minister. | Yiannis Mouzalas is expected to be reappointed as migration minister. |
| Updated | |
| at 5.39pm BST | |
| 5.03pm BST | |
| 17:03 | |
| European markets tumble | European markets tumble |
| Volkswagen shares have closed down 19.82% at €106, meaning some €26bn or so has been wiped off the value of the German carmaker this week. | Volkswagen shares have closed down 19.82% at €106, meaning some €26bn or so has been wiped off the value of the German carmaker this week. |
| The weakness in the motor sector came as investors feared the emissions scandal could spread beyond VW, and was one factor in a worldwide market slump. | The weakness in the motor sector came as investors feared the emissions scandal could spread beyond VW, and was one factor in a worldwide market slump. |
| But it was commodity companies which were the main reason behind the global falls, as base metal, coal and oil prices continued to weaken on fears of slowing worldwide demand, particularly in China. So the final scores showed: | But it was commodity companies which were the main reason behind the global falls, as base metal, coal and oil prices continued to weaken on fears of slowing worldwide demand, particularly in China. So the final scores showed: |
| On Wall Street the Dow Jones Industrial Average is currently nearly 270 points or 1.6% lower. | On Wall Street the Dow Jones Industrial Average is currently nearly 270 points or 1.6% lower. |
| Updated | |
| at 5.17pm BST | |
| 4.54pm BST | |
| 16:54 | |
| Professor David Bailey of Aston Business School says it is “seriously dumb” to try and cheat a regulator and discusses whether Volkswagen could also be cheating in Europe: | Professor David Bailey of Aston Business School says it is “seriously dumb” to try and cheat a regulator and discusses whether Volkswagen could also be cheating in Europe: |
| 4.42pm BST | |
| 16:42 | |
| Here’s Winterkorn’s statement, courtesy of Die Welt and Google Translate: | Here’s Winterkorn’s statement, courtesy of Die Welt and Google Translate: |
| “Ladies and gentlemen, the irregularities in diesel engines of our group contradict everything which Volkswagen stands for. Also I have not yet got the answers to all these questions at the moment. But we are about to uncover the background relentlessly. In addition at this time we will put everything on the table - as quickly, thoroughly and transparently as possible. And we will continue to work closely with the relevant state agencies and authorities. This quick and comprehensive information is a top priority. We owe that to our customers, our employees and the public. And to put it bluntly: manipulation at Volkswagen must never happen again. | “Ladies and gentlemen, the irregularities in diesel engines of our group contradict everything which Volkswagen stands for. Also I have not yet got the answers to all these questions at the moment. But we are about to uncover the background relentlessly. In addition at this time we will put everything on the table - as quickly, thoroughly and transparently as possible. And we will continue to work closely with the relevant state agencies and authorities. This quick and comprehensive information is a top priority. We owe that to our customers, our employees and the public. And to put it bluntly: manipulation at Volkswagen must never happen again. |
| Ladies and gentlemen, many millions of people around the world trust our brands, our cars and our technologies. I’m so sorry that we have broken this trust. I apologize to our customers... and the general public for the misconduct. Please believe me, we will do everything possible to make amends for any damage. And we will do everything to regain your confidence step by step. | Ladies and gentlemen, many millions of people around the world trust our brands, our cars and our technologies. I’m so sorry that we have broken this trust. I apologize to our customers... and the general public for the misconduct. Please believe me, we will do everything possible to make amends for any damage. And we will do everything to regain your confidence step by step. |
| In our group, more than 600,000 people are working to build the best cars for our customers. To our employees, I say, I know with how much effort and great real sincerity they do their work day after day. I am well aware that much is now questioned. I understand that. But it would be wrong if the hard and honest work of 600,000 people comes general suspicion because of the bad mistakes of a few. Our team does not deserve this. So we ask, I ask for your trust on our journey....We are working intensively on the necessary technical solutions, and we will do everything possible to prevent harm to our customers and employees. I give you my word, in all of this, we will proceed with the utmost openness and transparency. “ | In our group, more than 600,000 people are working to build the best cars for our customers. To our employees, I say, I know with how much effort and great real sincerity they do their work day after day. I am well aware that much is now questioned. I understand that. But it would be wrong if the hard and honest work of 600,000 people comes general suspicion because of the bad mistakes of a few. Our team does not deserve this. So we ask, I ask for your trust on our journey....We are working intensively on the necessary technical solutions, and we will do everything possible to prevent harm to our customers and employees. I give you my word, in all of this, we will proceed with the utmost openness and transparency. “ |
| 4.00pm BST | |
| 16:00 | |
| Winterkorn said he was sorry “we betrayed the trust” of millions of people. He added: “Swift and comprehensive clarification has now the utmost priority. To make it very clear: manipulation at VW must never happen again.” | Winterkorn said he was sorry “we betrayed the trust” of millions of people. He added: “Swift and comprehensive clarification has now the utmost priority. To make it very clear: manipulation at VW must never happen again.” |
| 3.50pm BST | |
| 15:50 | |
| VW chief executive Martin Winterkorn apologises but won't quit | VW chief executive Martin Winterkorn apologises but won't quit |
| VW chief executive Martin Winterkorn has apologised for the company’s misconduct, in his video statement which is now on the company’s website. | VW chief executive Martin Winterkorn has apologised for the company’s misconduct, in his video statement which is now on the company’s website. |
| But it appears he intends to fight to keep his job. | But it appears he intends to fight to keep his job. |
| Most important takeaway from #VW Winterkorn statement: He's going to fight for his CEO job. What's unclear: If he'll win. Next 48 hrs key. | Most important takeaway from #VW Winterkorn statement: He's going to fight for his CEO job. What's unclear: If he'll win. Next 48 hrs key. |
| Updated | |
| at 4.11pm BST | |
| 3.40pm BST | |
| 15:40 | |
| Workers’ representatives on Volkswagen’s supervisory board will push for management changes after the emissions scandal, council chief Bernd Osterloh told employees. | Workers’ representatives on Volkswagen’s supervisory board will push for management changes after the emissions scandal, council chief Bernd Osterloh told employees. |
| In a letter obtained by German newspaper Bild and reported by Reuters, he said: | In a letter obtained by German newspaper Bild and reported by Reuters, he said: |
| I can assure you that we will do everything possible in the supervisory board meetings this week to ensure the matter is cleared up quickly and that personnel consequences are drawn. And that will not just affect the rank and file, I can assure you. | I can assure you that we will do everything possible in the supervisory board meetings this week to ensure the matter is cleared up quickly and that personnel consequences are drawn. And that will not just affect the rank and file, I can assure you. |
| 3.27pm BST | |
| 15:27 | |
| Germany’s transport ministry is sending a fact-finding committee to Volkswagen this week to investigate the emissions scandal, Reuters is reporting. In a statement the ministry said: | Germany’s transport ministry is sending a fact-finding committee to Volkswagen this week to investigate the emissions scandal, Reuters is reporting. In a statement the ministry said: |
| Our committee will examine whether the vehicles in question were built and tested according to Germany and European rules, and whether that was done in accordance with vehicle registrations. | Our committee will examine whether the vehicles in question were built and tested according to Germany and European rules, and whether that was done in accordance with vehicle registrations. |
| 3.18pm BST | |
| 15:18 | |
| Volkswagen has said it will post a video statement by chief executive Martin Winterkorn on its website at 15.00 GMT (16.00 BST). | Volkswagen has said it will post a video statement by chief executive Martin Winterkorn on its website at 15.00 GMT (16.00 BST). |
| Earlier the company denied reports he would be replaced by Porsche’s Matthias Müller. | Earlier the company denied reports he would be replaced by Porsche’s Matthias Müller. |
| Updated | |
| at 3.30pm BST | |
| 3.13pm BST | |
| 15:13 | |
| Eurozone consumer confidence has come in worse than expected for September at 7.1, compared to the 6.8 than analysts had been forecasting. | Eurozone consumer confidence has come in worse than expected for September at 7.1, compared to the 6.8 than analysts had been forecasting. |
| And that is even before the Volkswagen scandal had emerged. | And that is even before the Volkswagen scandal had emerged. |
| 2.57pm BST | |
| 14:57 | |
| Wall Street opens sharply lower | Wall Street opens sharply lower |
| US markets have joined in the general rout, with falling commodity prices and the VW scandal sending investors heading for the exits. | US markets have joined in the general rout, with falling commodity prices and the VW scandal sending investors heading for the exits. |
| The Dow Jones Industrial Average has dropped more than 200 points in early trading. | The Dow Jones Industrial Average has dropped more than 200 points in early trading. |
| In the S&P 500, which is down 1%, Ford has lost 2.8% and General Motors is down 2.9%. | In the S&P 500, which is down 1%, Ford has lost 2.8% and General Motors is down 2.9%. |
| In Europe, Germany’s Dax is now down 2.7% with Volkswagen off 17.5%. France’s Cac is currently down 2.8% while the FTSE 100 has fallen 2%. | In Europe, Germany’s Dax is now down 2.7% with Volkswagen off 17.5%. France’s Cac is currently down 2.8% while the FTSE 100 has fallen 2%. |
| Updated | |
| at 2.57pm BST | |
| 2.48pm BST | |
| 14:48 | |
| UK calls for EU investigation into emissions scandal | UK calls for EU investigation into emissions scandal |
| UK Transport Secretary, Patrick McLoughlin, has confirmed that he’s calling for an EU-wide investigation. | UK Transport Secretary, Patrick McLoughlin, has confirmed that he’s calling for an EU-wide investigation. |
| Here’s the official statement: | Here’s the official statement: |
| “We are closely monitoring the situation and have been pushing for action at a European level for more accurate tests that reflect driving on the road. | “We are closely monitoring the situation and have been pushing for action at a European level for more accurate tests that reflect driving on the road. |
| It’s vital that the public has confidence in vehicle emissions tests and I am calling for the European Commission to investigate this issue as a matter of urgency.” | It’s vital that the public has confidence in vehicle emissions tests and I am calling for the European Commission to investigate this issue as a matter of urgency.” |
| Earlier today, a Commission spokesman said it was “premature to comment” on whether the EC should launch a probe. | Earlier today, a Commission spokesman said it was “premature to comment” on whether the EC should launch a probe. |
| “Investigations are ongoing within Volkswagen as well as in the U.S. and in Germany. | “Investigations are ongoing within Volkswagen as well as in the U.S. and in Germany. |
| Therefore, it is premature to comment on whether any specific immediate surveillance measures are also necessary in Europe and whether vehicles sold by Volkswagen inEurope are also affected. | Therefore, it is premature to comment on whether any specific immediate surveillance measures are also necessary in Europe and whether vehicles sold by Volkswagen inEurope are also affected. |
| EU says 'we need to get to the bottom' of VW scandal -- but holds off on probe into bloc's biggest carmaker & pillar of its largest economy | EU says 'we need to get to the bottom' of VW scandal -- but holds off on probe into bloc's biggest carmaker & pillar of its largest economy |
| 2.44pm BST | |
| 14:44 | |
| The fallout from the VW scandal continues. Johnson Matthey, which makes catalytic converters, has fallen nearly 7%, while US-Italian carmaker Fiat Chrysler has said it does not use any defeat devices in its vehicles. | The fallout from the VW scandal continues. Johnson Matthey, which makes catalytic converters, has fallen nearly 7%, while US-Italian carmaker Fiat Chrysler has said it does not use any defeat devices in its vehicles. |
| Fiat Chrysler says it is working closely with the US authorities to make sure its vehicles are compliant with the appropriate requirements. | Fiat Chrysler says it is working closely with the US authorities to make sure its vehicles are compliant with the appropriate requirements. |
| 2.44pm BST | |
| 14:44 | |
| @GrahamtRuddick It's a hat-trick with their 25% stake in SBRY | @GrahamtRuddick It's a hat-trick with their 25% stake in SBRY |
| Volkswagen is currently down nearly 19%, mining group Glencore is down 12% at 104p and well below the 125p level of last week’s fundraising as the commodity sell-off continues. And Sainsbury is 0.5% lower. | Volkswagen is currently down nearly 19%, mining group Glencore is down 12% at 104p and well below the 125p level of last week’s fundraising as the commodity sell-off continues. And Sainsbury is 0.5% lower. |
| 2.43pm BST | |
| 14:43 | |
| The economics editor of German newspaper Die Welt has warned that Volkswagen is now under attack from all sides, and asked whether the emissions crisis could bring down the company. | The economics editor of German newspaper Die Welt has warned that Volkswagen is now under attack from all sides, and asked whether the emissions crisis could bring down the company. |
| Nikolaus Doll says that the scandal has reached a dimension that could threaten the existence of the automaker, given the costs and penalties ahead. | Nikolaus Doll says that the scandal has reached a dimension that could threaten the existence of the automaker, given the costs and penalties ahead. |
| He cites the huge cost of replacing software in the cars affected, and the threat of class actions from customers affected. More here. | He cites the huge cost of replacing software in the cars affected, and the threat of class actions from customers affected. More here. |
| Feeling in Germany that emissions scandal could threaten existence of #Volkswagen via @welt http://t.co/fawr1qudZ4 | Feeling in Germany that emissions scandal could threaten existence of #Volkswagen via @welt http://t.co/fawr1qudZ4 |
| Updated | |
| at 2.58pm BST | |
| 2.39pm BST | |
| 14:39 | |
| VW: the crisis deepens | VW: the crisis deepens |
| Here’s a quick recap of how the crisis gripping Volkswagen has deepened today. | Here’s a quick recap of how the crisis gripping Volkswagen has deepened today. |
| VW has admitted that 11m vehicles worldwide have been fitted with a defeat device designed to cheat emissions tests. | VW has admitted that 11m vehicles worldwide have been fitted with a defeat device designed to cheat emissions tests. |
| It has set aside €6.5bn (£4.7bn) to deal with the potential costs of the crisis, the first estimate of the financial cost, but this could increase as the investigation continues. | It has set aside €6.5bn (£4.7bn) to deal with the potential costs of the crisis, the first estimate of the financial cost, but this could increase as the investigation continues. |
| VW’s share price has tumbled again today, currently down 19%, and the cost of insuring its debt against default has jumped. | VW’s share price has tumbled again today, currently down 19%, and the cost of insuring its debt against default has jumped. |
| The German government is now taking a close interest, with chancellor Angela Merkel demanding transparency. | The German government is now taking a close interest, with chancellor Angela Merkel demanding transparency. |
| The company has denied reports that CEO Martin Winterhorn will be forced out this week, to be replaced by Porsche’s boss Matthias Müller. | The company has denied reports that CEO Martin Winterhorn will be forced out this week, to be replaced by Porsche’s boss Matthias Müller. |
| Saxo Bank has warned that the full scale of the crisis is impossible to quantify. | Saxo Bank has warned that the full scale of the crisis is impossible to quantify. |
| And City firm Bernstein has predicted that the scandal could scupper the diesel car industry. | And City firm Bernstein has predicted that the scandal could scupper the diesel car industry. |
| Here’s our latest story: | Here’s our latest story: |
| Related: VW scandal: carmaker admits 11m vehicles are involved | Related: VW scandal: carmaker admits 11m vehicles are involved |
| 2.09pm BST | |
| 14:09 | |
| Merkel calls for 'full transparency' over Volkswagen scandal | Merkel calls for 'full transparency' over Volkswagen scandal |
| Angela Merkel has demanded full answers to what went wrong at the country’s largest carmaker. | Angela Merkel has demanded full answers to what went wrong at the country’s largest carmaker. |
| Speaking in Berlin, the German chancellor called for full transparency in clearing up the situation of how Volkswagen rigged emission tests. | Speaking in Berlin, the German chancellor called for full transparency in clearing up the situation of how Volkswagen rigged emission tests. |
| Merkel, who met with Finland’s PM Juha Sipila today, told reporters: | Merkel, who met with Finland’s PM Juha Sipila today, told reporters: |
| “Given the difficult situation, this is about showing complete transparency, clearing up the entire case. | “Given the difficult situation, this is about showing complete transparency, clearing up the entire case. |
| The Transport Minister is in close contact with the company, Volkswagen. And I hope that the facts will be put on the table as quickly as possible.” | The Transport Minister is in close contact with the company, Volkswagen. And I hope that the facts will be put on the table as quickly as possible.” |
| Volkswagen is a totem of German industry, having been created in the 1930s to build an affordable family car for the people. | Volkswagen is a totem of German industry, having been created in the 1930s to build an affordable family car for the people. |
| Today, it employes more than half a million people worldwide, across divisions including Audi, Bentley, Seat and Lamborghini as well as the VW marque. | Today, it employes more than half a million people worldwide, across divisions including Audi, Bentley, Seat and Lamborghini as well as the VW marque. |
| Updated | |
| at 2.13pm BST | |
| 2.05pm BST | |
| 14:05 | |
| This Reuters graphic explains how VW’s software detected whether a car was being tested, and changed the level of nitrogen oxide gases pumped out. | This Reuters graphic explains how VW’s software detected whether a car was being tested, and changed the level of nitrogen oxide gases pumped out. |
| How VW's "defeat device" works http://t.co/KBcL4VOSKj #dieselgate @reuterspictures pic.twitter.com/67h2UZl5fA | How VW's "defeat device" works http://t.co/KBcL4VOSKj #dieselgate @reuterspictures pic.twitter.com/67h2UZl5fA |
| Updated | |
| at 2.25pm BST | |
| 1.42pm BST | |
| 13:42 | |
| Bernstein’s Max Warburton also believes that Volkswagen management changes are inevitable. | Bernstein’s Max Warburton also believes that Volkswagen management changes are inevitable. |
| Any attempt to pin the blame on junior staff will flounder, he says. The buck must stop with CEO Martin Winterkorn. | Any attempt to pin the blame on junior staff will flounder, he says. The buck must stop with CEO Martin Winterkorn. |
| Warburton writes: | Warburton writes: |
| VW’s press release and comments since have suggested they may end up trying to blame someone at the operational and engineering level – all this talk of “not tolerating” this behaviour and hiring external investigators suggests as much. | VW’s press release and comments since have suggested they may end up trying to blame someone at the operational and engineering level – all this talk of “not tolerating” this behaviour and hiring external investigators suggests as much. |
| Perhaps it is credible that some engineers came up with a solution and senior management was not aware of it. VW has over 450,000 employees – it’s not possible to track their actions closely. I have enough trouble tracking what my small team of associates is up to. I’ve no idea what my kids are up to right now (it may involve writing computer code too). | Perhaps it is credible that some engineers came up with a solution and senior management was not aware of it. VW has over 450,000 employees – it’s not possible to track their actions closely. I have enough trouble tracking what my small team of associates is up to. I’ve no idea what my kids are up to right now (it may involve writing computer code too). |
| So we probably need to give VW management a bit of a break, Warburton continues. But if any CEO should have spotted this scandal, it’s Martin Winterkorn ... | So we probably need to give VW management a bit of a break, Warburton continues. But if any CEO should have spotted this scandal, it’s Martin Winterkorn ... |
| Winterkorn’s personal brand has been built on being “the engineer’s engineer” and the “detail main”. There are wonderful stories of him personally pulling apart the gearbox of an Audi car at Le Mans after it broke and figuring out personally what went wrong (source: Allan McNish, racing driver). We are not talking about the CEO of a French OEM, schooled at ENA. We are not talking about a US executive with an MBA and great smile. | Winterkorn’s personal brand has been built on being “the engineer’s engineer” and the “detail main”. There are wonderful stories of him personally pulling apart the gearbox of an Audi car at Le Mans after it broke and figuring out personally what went wrong (source: Allan McNish, racing driver). We are not talking about the CEO of a French OEM, schooled at ENA. We are not talking about a US executive with an MBA and great smile. |
| This is an engineer, who theoretically should have asked questions about how VW suddenly improved its NOx emissions to meet Californian standards. But then we probably should have asked the question too… | This is an engineer, who theoretically should have asked questions about how VW suddenly improved its NOx emissions to meet Californian standards. But then we probably should have asked the question too… |
| Here’s a summary of Warburton’s research note: | Here’s a summary of Warburton’s research note: |
| Updated | |
| at 1.51pm BST | |