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VW emissions crisis: Owners call lawyers as scandal reaches Europe - live VW emissions crisis: Owners call lawyers as scandal reaches Europe - live
(35 minutes later)
4.39pm BST16:39
UK to re-test for emissions
The UK department for transport says it will start re-testing cars from different manufacturers for emisssions. It says the regulator is working with manufacturers to make sure the VW cases are not an industry wide problem.
Dept for Transport announces it is to start re-testing cars from different manufacturers to ensure #VW scandal "is not industry wide"
Updated at 4.49pm BST
4.29pm BST16:29
Porsche boss to get top VW job - report
Matthias Müller, the chief executive of Porsche, has been the odds-on favourite to become the new boss of Volkswagen to replace Martin Winterkorn and now the Wall Street Journal is reporting that he will indeed get the top job.
Breaking: Porsche CEO Matthias Muller to become new Volkswagen CEO, person familiar with the matter says http://t.co/Wen9Ecs6SG
Updated at 4.45pm BST
4.24pm BST16:24
And here’s piece of video on the VW scandal, what the company did and why:
4.17pm BST16:17
And the fallout continues. The European Commission has said there would be “zero tolerance” on car emissions fraud, while the Russian technical watchdog has asked for information from Volkswagen about its diesel engines.
Meanwhile Moody’s is the latest ratings agency to change its outlook on the company to negative.
Moody's affirms Volkswagen's A2/P-1 ratings and changes the outlook to negative following EPA's notice of violation https://t.co/5UGd9sJml4
Updated at 4.21pm BST
3.39pm BST15:393.39pm BST15:39
A reminder of what VW has actually done and how its defeat device managed to cheat emissions tests:A reminder of what VW has actually done and how its defeat device managed to cheat emissions tests:
Related: The Volkswagen emissions scandal explainedRelated: The Volkswagen emissions scandal explained
3.38pm BST15:383.38pm BST15:38
Volkswagen needs to change its corporate culture according to the company’s works council (which at this point seems a pretty self evident comment.)Volkswagen needs to change its corporate culture according to the company’s works council (which at this point seems a pretty self evident comment.)
In a letter to employees, the council said it would discuss with management how to cope with the costs arising from the scandal, and how to accelerate its efficiency drive. But it says it will do everything possible to make sure jobs will not be affected.In a letter to employees, the council said it would discuss with management how to cope with the costs arising from the scandal, and how to accelerate its efficiency drive. But it says it will do everything possible to make sure jobs will not be affected.
On the new chief executive to replace Martin Winterkorn, the council said it would only accept someone with technical and entrepreneurial expertise, who would consider the needs of both the company and the employees.On the new chief executive to replace Martin Winterkorn, the council said it would only accept someone with technical and entrepreneurial expertise, who would consider the needs of both the company and the employees.
Updated at 3.40pm BSTUpdated at 3.40pm BST
3.33pm BST15:333.33pm BST15:33
If you have bought a VW car in the UK, the company has so far said very little about how the emissions scandal could effect you. Dealers are telling customers it is business as usual. But should you be worried? Here’s our Q&A:If you have bought a VW car in the UK, the company has so far said very little about how the emissions scandal could effect you. Dealers are telling customers it is business as usual. But should you be worried? Here’s our Q&A:
Related: Volkswagen emissions scandal: how it affects youRelated: Volkswagen emissions scandal: how it affects you
3.25pm BST15:253.25pm BST15:25
France is planning to carry out tests to make sure cars on its roads are not equipped with the software which VW used to fake emissions tests.France is planning to carry out tests to make sure cars on its roads are not equipped with the software which VW used to fake emissions tests.
After a meeting with carmakers Renault and PSA Peugeot Citroen, the country’s environment minister Segolene Royal told BFM television:After a meeting with carmakers Renault and PSA Peugeot Citroen, the country’s environment minister Segolene Royal told BFM television:
Random tests will take place to establish cars are not equipped with fraudulent software.Random tests will take place to establish cars are not equipped with fraudulent software.
The tests are expected to involve a random sample of around 100 vehicles.The tests are expected to involve a random sample of around 100 vehicles.
3.09pm BST15:093.09pm BST15:09
Volkswagen adverts routinely used to boast about the company’s reliability and efficiency, which looks a bit ironic now. Here’s some of the best from the archive:Volkswagen adverts routinely used to boast about the company’s reliability and efficiency, which looks a bit ironic now. Here’s some of the best from the archive:
Related: How Volkswagen relied on clever advertising to build its reputationRelated: How Volkswagen relied on clever advertising to build its reputation
Updated at 3.11pm BSTUpdated at 3.11pm BST
2.52pm BST14:522.52pm BST14:52
VW to dismiss three top executives on Friday - reportVW to dismiss three top executives on Friday - report
VW will dismiss the research and development chiefs of Audi and Porsche, and US chief executive Michael Horn, Reuters is reporting.VW will dismiss the research and development chiefs of Audi and Porsche, and US chief executive Michael Horn, Reuters is reporting.
Audi R&D boss Ulrich Hackenberg and Porsche’s Wolfgang Hatz, as well as Horn, will be dismissed at Friday’s supervisory board meeting, a source told Reuters.Audi R&D boss Ulrich Hackenberg and Porsche’s Wolfgang Hatz, as well as Horn, will be dismissed at Friday’s supervisory board meeting, a source told Reuters.
German newspaper Bild earlier reported that Hackenberg and Hatz would go.German newspaper Bild earlier reported that Hackenberg and Hatz would go.
Horn admitted on Monday that VW had “totally screwed up” over the emissions scandal.Horn admitted on Monday that VW had “totally screwed up” over the emissions scandal.
Updated at 3.42pm BSTUpdated at 3.42pm BST
2.26pm BST14:262.26pm BST14:26
Volkswagen could have its long term credit rating downgraded in the wake of the €6.5bn charge the company has set aside to deal with the crisis, says Standard & Poor’s.Volkswagen could have its long term credit rating downgraded in the wake of the €6.5bn charge the company has set aside to deal with the crisis, says Standard & Poor’s.
The agency has put VW’s A rating on creditwatch with negative implications, and said it anticipated the company would face substantial penalties and costs to resolve the problem.The agency has put VW’s A rating on creditwatch with negative implications, and said it anticipated the company would face substantial penalties and costs to resolve the problem.
There is also the matter of any legal costs following an expected barrage of lawsuits.There is also the matter of any legal costs following an expected barrage of lawsuits.
2.13pm BST14:132.13pm BST14:13
Gwyn TophamGwyn Topham
Here’s our report on the possible payoff for the former VW boss who quit on Wednesday:Here’s our report on the possible payoff for the former VW boss who quit on Wednesday:
The former chief executive of Volkswagen, Martin Winterkorn, will net a €1m (£740,000) annual pension from a €28.5m pot held with the disgraced carmaker, and could be in line for a €3.2m payoff after quitting on Wednesday.The former chief executive of Volkswagen, Martin Winterkorn, will net a €1m (£740,000) annual pension from a €28.5m pot held with the disgraced carmaker, and could be in line for a €3.2m payoff after quitting on Wednesday.
Winterkorn, who was one of Europe’s highest-paid executives, with a salary of €1.6m boosted to nearly €16m last year with bonuses and loyalty payments, finally fell on his sword as the extent of the emissions test-rigging scandal emerged.Winterkorn, who was one of Europe’s highest-paid executives, with a salary of €1.6m boosted to nearly €16m last year with bonuses and loyalty payments, finally fell on his sword as the extent of the emissions test-rigging scandal emerged.
Winterkorn is entitled to 70% of his fixed salary, according to Volkswagen’s annual report, from his staggering €28.5m pot. He may also be entitled to two years’ salary severance pay if “membership of the board of management is terminated for cause through no fault of the board of management member”. Winterkorn stressed when he resigned that he was “not aware of any wrongdoing on my part”.Winterkorn is entitled to 70% of his fixed salary, according to Volkswagen’s annual report, from his staggering €28.5m pot. He may also be entitled to two years’ salary severance pay if “membership of the board of management is terminated for cause through no fault of the board of management member”. Winterkorn stressed when he resigned that he was “not aware of any wrongdoing on my part”.
Full story here:Full story here:
Related: VW scandal: outgoing boss's €28m pension pot to pay out €1m a yearRelated: VW scandal: outgoing boss's €28m pension pot to pay out €1m a year
2.07pm BST14:072.07pm BST14:07
Italy has also opened an investigation into whether VW’s manipulation of emissions data affected cars in the country, the latest probe into the company. It was launched by the prosecutor’s office in Turin.Italy has also opened an investigation into whether VW’s manipulation of emissions data affected cars in the country, the latest probe into the company. It was launched by the prosecutor’s office in Turin.
VW has admitted 11m of its cars around the world could be involved.VW has admitted 11m of its cars around the world could be involved.
2.01pm BST14:012.01pm BST14:01
Meanwhile Italy has launched a study into possible health risks associated with diesel emission filters used in cars throughout the EU.Meanwhile Italy has launched a study into possible health risks associated with diesel emission filters used in cars throughout the EU.
The worries pre-date the current VW scandal but they add to the general mood over uncertainty over diesel. Reuters reports:The worries pre-date the current VW scandal but they add to the general mood over uncertainty over diesel. Reuters reports:
The concern over the filters, raised by an Italian prosecutor, pre-dates the Volkswagen emissions scandal and relates to devices which were installed by various car makers from 2008 onwards.The concern over the filters, raised by an Italian prosecutor, pre-dates the Volkswagen emissions scandal and relates to devices which were installed by various car makers from 2008 onwards.
The health ministry decided to investigate the matter after Rome’s chief prosecutor wrote to the government in July, referring to expert opinion alleging the filters increased the risks to health of diesel emissions rather than reducing them, and saying they posed an “extreme danger”.The health ministry decided to investigate the matter after Rome’s chief prosecutor wrote to the government in July, referring to expert opinion alleging the filters increased the risks to health of diesel emissions rather than reducing them, and saying they posed an “extreme danger”.
The letter, obtained by Reuters, was sent by Prosecutor Giuseppe Pignatone to Italy’s ministers for health, transport and the environment. It said the filters reduced the size of pollutant particles, making them more easily absorbed by humans.The letter, obtained by Reuters, was sent by Prosecutor Giuseppe Pignatone to Italy’s ministers for health, transport and the environment. It said the filters reduced the size of pollutant particles, making them more easily absorbed by humans.
The letter is critical of all three ministries and says that the environment ministry has not conducted any studies into the impact of the filters on air quality or human health.The letter is critical of all three ministries and says that the environment ministry has not conducted any studies into the impact of the filters on air quality or human health.
An Italian health ministry spokesman told Reuters the ministry had asked the Superior Health Institute to conduct a study into the matter after receiving Pignatone’s letter.An Italian health ministry spokesman told Reuters the ministry had asked the Superior Health Institute to conduct a study into the matter after receiving Pignatone’s letter.
1.52pm BST13:521.52pm BST13:52
Germany’s main stock index, the DAX, has now slumped by 200 points, or 2.1%, to 9,407, as the Volkswagen scandal hits confidence in German industry.Germany’s main stock index, the DAX, has now slumped by 200 points, or 2.1%, to 9,407, as the Volkswagen scandal hits confidence in German industry.
Ironically, VW remains the only riser on the index, with BMW still the top faller despite denying manipulating emissions tests.Ironically, VW remains the only riser on the index, with BMW still the top faller despite denying manipulating emissions tests.
Some analysts are speculating that authorities have been deliberately turning a blind eye to emissions tests for years, due to the importance of the sector.Some analysts are speculating that authorities have been deliberately turning a blind eye to emissions tests for years, due to the importance of the sector.
Mike van Dulken, head of research at Accendo Markets explains:Mike van Dulken, head of research at Accendo Markets explains:
Shares in BMW are weak again today on speculation that its diesel emissions test results may also have been doctored to appear eco-friendly and thus saleable in the world’s second largest but arguably the most important car market; the US. While this adds to this week’s VWgate revelation, confirmation of yet another major carmaker having potentially been ‘at it’ will hardly come as a surprise for such a highly competitive industry.Shares in BMW are weak again today on speculation that its diesel emissions test results may also have been doctored to appear eco-friendly and thus saleable in the world’s second largest but arguably the most important car market; the US. While this adds to this week’s VWgate revelation, confirmation of yet another major carmaker having potentially been ‘at it’ will hardly come as a surprise for such a highly competitive industry.
As more details emerge about the extent to which VW, BMW and likely others may have gone to pull the wool over regulators’ and of course the public’s eyes, it begs the question of how ‘polluted’ the industry will turn out to be.As more details emerge about the extent to which VW, BMW and likely others may have gone to pull the wool over regulators’ and of course the public’s eyes, it begs the question of how ‘polluted’ the industry will turn out to be.
1.03pm BST13:031.03pm BST13:03
Today’s fall in BMW’s share price shows that investors are very nervous about “diesel engines, compliance and future regulation,” Arndt Ellinghorst, head of Automotive Research at Evercore ISI, told Reuters.Today’s fall in BMW’s share price shows that investors are very nervous about “diesel engines, compliance and future regulation,” Arndt Ellinghorst, head of Automotive Research at Evercore ISI, told Reuters.
12.50pm BST12:5012.50pm BST12:50
BMW: Our cars don't break emission rulesBMW: Our cars don't break emission rules
BMW has insisted that it has not not manipulated emissions tests, following Auto Bild’s claim that some of its vehicles were exceeding legal limits.BMW has insisted that it has not not manipulated emissions tests, following Auto Bild’s claim that some of its vehicles were exceeding legal limits.
A spokesman said the company isn’t aware of these test results cited, adding:A spokesman said the company isn’t aware of these test results cited, adding:
“There is no difference in the treatment of exhaust emissions whether they are on (test) rollers or on the road.“There is no difference in the treatment of exhaust emissions whether they are on (test) rollers or on the road.
Despite that denial, BMW shares are still down 6%, leading the fallers on the Frankfurt stock exchange. Volkswagen is the only riser, up 1%.Despite that denial, BMW shares are still down 6%, leading the fallers on the Frankfurt stock exchange. Volkswagen is the only riser, up 1%.
Updated at 1.00pm BSTUpdated at 1.00pm BST
12.33pm BST12:3312.33pm BST12:33
UK parliament to hold emissions inquiryUK parliament to hold emissions inquiry
Britain’s transport select committee is set to launch an inquiry into the scandal and its wider lessons for testing, which could see ministers and VW executives in Britain hauled before MPs, our transport correspondent Gwyn Topham reports.Britain’s transport select committee is set to launch an inquiry into the scandal and its wider lessons for testing, which could see ministers and VW executives in Britain hauled before MPs, our transport correspondent Gwyn Topham reports.
While an inquiry cannot be officially launched until Parliament returns in October, Louise Ellmann, chair of the committee, said:While an inquiry cannot be officially launched until Parliament returns in October, Louise Ellmann, chair of the committee, said:
“Action must be taken to give the public confidence in the testing regime in relation to emissions, safety, recyclability and other factors.“Action must be taken to give the public confidence in the testing regime in relation to emissions, safety, recyclability and other factors.
There are questions over whether the testing authorities commissioned by motor manufacturers are truly independent.”There are questions over whether the testing authorities commissioned by motor manufacturers are truly independent.”
12.21pm BST12:2112.21pm BST12:21
Gwyn TophamGwyn Topham
Pressure is growing on the UK government to follow up its call for a European Commission inquiry, after the Guardian revealed that the Department for Transport had been lobbying in private for less rigorous tests.Pressure is growing on the UK government to follow up its call for a European Commission inquiry, after the Guardian revealed that the Department for Transport had been lobbying in private for less rigorous tests.
Environmental law organisation ClientEarth has written to the DfT demanding it take action to establish whether VW’s use of “defeat devices” was part of wider industry practice, and to release all information held on the real-world emissions performance of cars licensed for sale on UK roads.Environmental law organisation ClientEarth has written to the DfT demanding it take action to establish whether VW’s use of “defeat devices” was part of wider industry practice, and to release all information held on the real-world emissions performance of cars licensed for sale on UK roads.
James Thornton, CEO of ClientEarth, said:James Thornton, CEO of ClientEarth, said:
“Five days into the diesel emissions scandal the government has taken no action to reassure the public that cars on our roads meet even the lax standards required by EU law. The industry has shown it cannot be trusted. We cannot wait for action from the EU.“Five days into the diesel emissions scandal the government has taken no action to reassure the public that cars on our roads meet even the lax standards required by EU law. The industry has shown it cannot be trusted. We cannot wait for action from the EU.
First responsibility for protecting our health lies with our own government. The public must know the full scale of the problem and urgent action must be taken to fix it.”First responsibility for protecting our health lies with our own government. The public must know the full scale of the problem and urgent action must be taken to fix it.”
12.19pm BST12:1912.19pm BST12:19
Here’s our full guide to the potential candidates for the toughest job in industry today - steering Volkswagen out of the crisis.Here’s our full guide to the potential candidates for the toughest job in industry today - steering Volkswagen out of the crisis.
Related: Volkswagen's new chief executive: a guide to the contendersRelated: Volkswagen's new chief executive: a guide to the contenders
12.09pm BST12:0912.09pm BST12:09
Matthias Müller, the CEO of Porsche, is odds-on to become the new boss of Volkswagen.Matthias Müller, the CEO of Porsche, is odds-on to become the new boss of Volkswagen.
He’s followed by four company insiders, led by Herbert Diess, who runs Volkswagen’s passenger car brand.He’s followed by four company insiders, led by Herbert Diess, who runs Volkswagen’s passenger car brand.
Here’s the latest odds from Ladbrokes:Here’s the latest odds from Ladbrokes:
11.56am BST11:5611.56am BST11:56
Volkswagen could begin firing staff tomorrow over the emissions scandal, Reuters reports.Volkswagen could begin firing staff tomorrow over the emissions scandal, Reuters reports.
An internal investigation is underway to find who was responsible for programming VW diesel cars to emit lower levels of nitrogen oxides.An internal investigation is underway to find who was responsible for programming VW diesel cars to emit lower levels of nitrogen oxides.
Reuters adds:Reuters adds:
Top managers could also be replaced, even if they did not know about the deception, with U.S. chief Michael Horn and group sales chief Christian Klingler seen as potentially vulnerable.Top managers could also be replaced, even if they did not know about the deception, with U.S. chief Michael Horn and group sales chief Christian Klingler seen as potentially vulnerable.
11.45am BST11:4511.45am BST11:45
German minister: VW manipulated tests in Europe tooGerman minister: VW manipulated tests in Europe too
Germany’s transport minister, Alexander Dobrindt, has confirmed that Volkswagen vehicles containing software to evade emissions testing were sold across Europe, not jus in the US.Germany’s transport minister, Alexander Dobrindt, has confirmed that Volkswagen vehicles containing software to evade emissions testing were sold across Europe, not jus in the US.
He told reporters in Berlin that:He told reporters in Berlin that:
“VW told us that in Europe too, vehicles with 1.6 and 2 litre diesel engines are affected by the manipulation.”“VW told us that in Europe too, vehicles with 1.6 and 2 litre diesel engines are affected by the manipulation.”
Dobrindt added that we should learn “in the coming days” how many cars were sold in Europe, out of the 11 million worldwide.Dobrindt added that we should learn “in the coming days” how many cars were sold in Europe, out of the 11 million worldwide.
Die Welt has more details (in German):Die Welt has more details (in German):
German paper @welt reports German transport minister saying #Volkswagen emissions scandal also affects European cars http://t.co/d1sytp6cikGerman paper @welt reports German transport minister saying #Volkswagen emissions scandal also affects European cars http://t.co/d1sytp6cik
Updated at 1.17pm BSTUpdated at 1.17pm BST
11.37am BST11:3711.37am BST11:37
Germany’s stock market has hit its lowest level since late August, dragged down by reports that some BMW cars have failed emissions tests (details here).Germany’s stock market has hit its lowest level since late August, dragged down by reports that some BMW cars have failed emissions tests (details here).
#DAX smashes thorough 9500 for first time since Black Monday as #BMW -8.5%, #Daimler -4%, #Continental -4.7% pic.twitter.com/ZJQnrDCGSW#DAX smashes thorough 9500 for first time since Black Monday as #BMW -8.5%, #Daimler -4%, #Continental -4.7% pic.twitter.com/ZJQnrDCGSW
11.19am BST11:1911.19am BST11:19
Larry ElliottLarry Elliott
Emmanuel Macron, the French economy minister, has said there is no evidence that the big French car makers - Renault and Peugeot - are guilty of fiddling their emissions tests.Emmanuel Macron, the French economy minister, has said there is no evidence that the big French car makers - Renault and Peugeot - are guilty of fiddling their emissions tests.
He also warned against an over-reaction that could put jobs at risk.He also warned against an over-reaction that could put jobs at risk.
Speaking at a breakfast at the French embassy in London ahead of an inward investment conference, Macron said VW had betrayed customers and governments.Speaking at a breakfast at the French embassy in London ahead of an inward investment conference, Macron said VW had betrayed customers and governments.
“At the moment it seems to be restricted to VW, due to the pressure of the market and the pressure they put themselves under.“At the moment it seems to be restricted to VW, due to the pressure of the market and the pressure they put themselves under.
“We have to be careful that just because somebody lied we don’t kill all the others. We have to be careful that we don’t put at risk a lot of jobs because of the misbehaviour of one player.”“We have to be careful that just because somebody lied we don’t kill all the others. We have to be careful that we don’t put at risk a lot of jobs because of the misbehaviour of one player.”
11.03am BST11:0311.03am BST11:03
UK lawyers inundated by calls from Volkswagen ownersUK lawyers inundated by calls from Volkswagen owners
Volkswagen is facing a wave of legal claims from UK owners over the emissions scandal.Volkswagen is facing a wave of legal claims from UK owners over the emissions scandal.
Owners in the UK are rushing to consult lawyers, amid speculation that VW could face damage claims running into billions of pounds.Owners in the UK are rushing to consult lawyers, amid speculation that VW could face damage claims running into billions of pounds.
Leigh Day, a London-based law firm specialising in personal injury and product liability claims, says it has been “inundated” by inquiries.Leigh Day, a London-based law firm specialising in personal injury and product liability claims, says it has been “inundated” by inquiries.
A spokesman tells me:A spokesman tells me:
We believe it will be in the thousands - it’s constant enquirers at the moment.We believe it will be in the thousands - it’s constant enquirers at the moment.
Another law firm, Slater & Gordon, is also fielding calls from concerned drivers. A spokeswoman says:Another law firm, Slater & Gordon, is also fielding calls from concerned drivers. A spokeswoman says:
“We’ve received enquiries from the general public, wondering what they should do.”“We’ve received enquiries from the general public, wondering what they should do.”
We don’t yet know how many VW vehicles containing illicit software were sold in the UK, but the company has revealed that 11 million were sold worldwide. That includes the 480,000 being recalled in America.We don’t yet know how many VW vehicles containing illicit software were sold in the UK, but the company has revealed that 11 million were sold worldwide. That includes the 480,000 being recalled in America.
Slater & Gordon’s head of group litigation, Jacqueline Young, believes that owners and car dealerships will both have viable legal claims for breach of contract, given that they have purchased the car based on misrepresentations which have devalued the vehicle.Slater & Gordon’s head of group litigation, Jacqueline Young, believes that owners and car dealerships will both have viable legal claims for breach of contract, given that they have purchased the car based on misrepresentations which have devalued the vehicle.
VW shareholders might also have a case against the company, she believes, given the 30% slump in its share price this week.VW shareholders might also have a case against the company, she believes, given the 30% slump in its share price this week.
Here’s Slater & Gordon’s Q&A on the issue.Here’s Slater & Gordon’s Q&A on the issue.
Young has also already predicted that UK consumers could form a huge class action lawsuit. She said:Young has also already predicted that UK consumers could form a huge class action lawsuit. She said:
“If the Volkswagen scandal applies to cars in the UK then this has the potential to be one of the largest group action lawsuits this country has seen.“If the Volkswagen scandal applies to cars in the UK then this has the potential to be one of the largest group action lawsuits this country has seen.
“Quite simply it could be the car manufacturer’s Libor scandal.“Quite simply it could be the car manufacturer’s Libor scandal.
Thursday's Daily Mail front page: UK drivers to sue VW for billions #tomorrowspaperstoday #bbcpapers pic.twitter.com/gx01M70dY7Thursday's Daily Mail front page: UK drivers to sue VW for billions #tomorrowspaperstoday #bbcpapers pic.twitter.com/gx01M70dY7
Updated at 11.10am BSTUpdated at 11.10am BST
10.34am BST10:3410.34am BST10:34
Unsurprisingly, Volkswagen’s image among consumers has been dented by the emissions scandal.Unsurprisingly, Volkswagen’s image among consumers has been dented by the emissions scandal.
Polling firm YouGov has found that the public’s perception of the VW brand has slumped since last week:Polling firm YouGov has found that the public’s perception of the VW brand has slumped since last week:
Our Buzz score measures whether a respondent has heard anything positive or negative about a brand in the last two weeks.Our Buzz score measures whether a respondent has heard anything positive or negative about a brand in the last two weeks.
A dramatic drop in Buzz score is present in both markets. In the US, there has been a drop of ten points from +10 to 0. In the UK, VW has seen a decline from +5 to -3 in the last few days. It is now the lowest ranked car brand in the UK in terms of Buzz (out of 34). This is a fall of 31 places in a week.A dramatic drop in Buzz score is present in both markets. In the US, there has been a drop of ten points from +10 to 0. In the UK, VW has seen a decline from +5 to -3 in the last few days. It is now the lowest ranked car brand in the UK in terms of Buzz (out of 34). This is a fall of 31 places in a week.
10.25am BST10:2510.25am BST10:25
BMW cars 'fail emission tests'BMW cars 'fail emission tests'
BMW’s share price was hit this morning because a German car magazine is reporting that some of its diesel cars were found to exceed emissions standards.BMW’s share price was hit this morning because a German car magazine is reporting that some of its diesel cars were found to exceed emissions standards.
BMW has denied using the ‘defeat devices’ used by VW to cut emissions during a test.BMW has denied using the ‘defeat devices’ used by VW to cut emissions during a test.
Reuters has the details:Reuters has the details:
Now BMW's stock is falling because of this: http://t.co/puZq29XMbd pic.twitter.com/r8PNY4USsHNow BMW's stock is falling because of this: http://t.co/puZq29XMbd pic.twitter.com/r8PNY4USsH
Updated at 10.54am BSTUpdated at 10.54am BST
10.21am BST10:2110.21am BST10:21
More details about exactly who at VW was involved in the scandal could come tomorrow:More details about exactly who at VW was involved in the scandal could come tomorrow:
RTRS Reporting That VW Will Begin Announcing Names Of People Involved In Emissions Scandal From Friday OnwardsRTRS Reporting That VW Will Begin Announcing Names Of People Involved In Emissions Scandal From Friday Onwards
10.09am BST10:0910.09am BST10:09
BMW’s share price is swerving around today, dropping 4% at one stage to become the biggest faller on the DAX.BMW’s share price is swerving around today, dropping 4% at one stage to become the biggest faller on the DAX.
They had been 3% higher in early trading, in what the FT calls “a very skittish mood”.They had been 3% higher in early trading, in what the FT calls “a very skittish mood”.
Another volatile day for autos - BMW up, then down then up again on reports it's being dragged in to emissions story pic.twitter.com/LRFYCw6oltAnother volatile day for autos - BMW up, then down then up again on reports it's being dragged in to emissions story pic.twitter.com/LRFYCw6olt
BMW shares take a sudden tumble http://t.co/IWrMg2mLdjBMW shares take a sudden tumble http://t.co/IWrMg2mLdj
9.54am BST09:549.54am BST09:54
The Volkswagen diesel emissions scandal could be as serious as BP’s Gulf of Mexico oil disaster, warns professor Baback Yazdani, dean of Nottingham Business School.The Volkswagen diesel emissions scandal could be as serious as BP’s Gulf of Mexico oil disaster, warns professor Baback Yazdani, dean of Nottingham Business School.
Professor Yazdani, a former director of Product Development Operations at Jaguar Land Rover, believes the financial consequences could be immense:Professor Yazdani, a former director of Product Development Operations at Jaguar Land Rover, believes the financial consequences could be immense:
“This could be an unprecedented loss for VW, which became the world’s largest automaker this year.“This could be an unprecedented loss for VW, which became the world’s largest automaker this year.
This may be at the same scale as BP’s Gulf of Mexico disaster, or worse, proving that responsible management and leadership is of prime importance to all companies.This may be at the same scale as BP’s Gulf of Mexico disaster, or worse, proving that responsible management and leadership is of prime importance to all companies.
The financial consequences are too early to calculate as the warranty costs will be combined by loss of consumer trust and potential fines in North America, Europe and beyond. The resignation of CEO Martin Winterkorn is an attempt to draw a line and make rapid changes.”The financial consequences are too early to calculate as the warranty costs will be combined by loss of consumer trust and potential fines in North America, Europe and beyond. The resignation of CEO Martin Winterkorn is an attempt to draw a line and make rapid changes.”
In July, BP agreed to pay a record environmental fine of $18.7bn over the Deepwater Horizon disaster; VW has now hired the legal firm which BP used.In July, BP agreed to pay a record environmental fine of $18.7bn over the Deepwater Horizon disaster; VW has now hired the legal firm which BP used.
Updated at 9.55am BSTUpdated at 9.55am BST
9.20am BST09:209.20am BST09:20
VW shares are continuing to climb this morning, and are now up almost 7% at €119.VW shares are continuing to climb this morning, and are now up almost 7% at €119.
Clairinvest fund manager Ion-Marc Valahu says investors in Frankfurt are welcoming the departure of Martin Winterkorn.Clairinvest fund manager Ion-Marc Valahu says investors in Frankfurt are welcoming the departure of Martin Winterkorn.
“They’ve kicked out the CEO. The company and its shares should be able to stabilise.”“They’ve kicked out the CEO. The company and its shares should be able to stabilise.”
(via Reuters)(via Reuters)
9.06am BST09:069.06am BST09:06
EU countries lobbied for flawed emission testsEU countries lobbied for flawed emission tests
Documents seen by the Guardian show that Europe’s three largest countries have been pushing regulators for less rigorous testing on carbon dioxide emissions.Documents seen by the Guardian show that Europe’s three largest countries have been pushing regulators for less rigorous testing on carbon dioxide emissions.
France, Germany and the UK all wanted loopholes that would have allowed cars to emit more CO2 than legally permitted -- pushing up greenhouse gas emissions and fuel bills.France, Germany and the UK all wanted loopholes that would have allowed cars to emit more CO2 than legally permitted -- pushing up greenhouse gas emissions and fuel bills.
Germany’s proposals including testing on sloping downhill tracks, and also allow manufacturers to declare a final CO2 value 4% lower than the one measured.Germany’s proposals including testing on sloping downhill tracks, and also allow manufacturers to declare a final CO2 value 4% lower than the one measured.
The Volkswagen scandal relates to nitric oxide (NO) and nitrogen dioxide (NO2), rather than carbon dioxide, but it puts all three country’s commitment to lower emissions into question. Here’s the full story.The Volkswagen scandal relates to nitric oxide (NO) and nitrogen dioxide (NO2), rather than carbon dioxide, but it puts all three country’s commitment to lower emissions into question. Here’s the full story.
Exclusive: UK, France and Germany lobbied for flawed car emissions tests, documents reveal http://t.co/gB378AYQ5BExclusive: UK, France and Germany lobbied for flawed car emissions tests, documents reveal http://t.co/gB378AYQ5B
Updated at 9.56am BSTUpdated at 9.56am BST
8.42am BST08:428.42am BST08:42
Shares in Japanese carmakers fell today, on fears that they could be hit by the emissions scandal.Shares in Japanese carmakers fell today, on fears that they could be hit by the emissions scandal.
Mazda led the selloff, down 6.8%, followed by Mitsubishi (-5%), Honda (down 3%), and Nissan (-2.5%).Mazda led the selloff, down 6.8%, followed by Mitsubishi (-5%), Honda (down 3%), and Nissan (-2.5%).
Manufactures of car parts were also hit. NGK Insulators, which makes diesel particulate filters, fell almost 7%.Manufactures of car parts were also hit. NGK Insulators, which makes diesel particulate filters, fell almost 7%.
That all helped send the Nikkei index down by 2.7%, as traders returned to their desks after a three-day holidayThat all helped send the Nikkei index down by 2.7%, as traders returned to their desks after a three-day holiday
Toyota was less affected, only falling by 1.85%. It could benefit from the scandal, if more consumers buy electric cars such as its Prius.Toyota was less affected, only falling by 1.85%. It could benefit from the scandal, if more consumers buy electric cars such as its Prius.
8.30am BST08:308.30am BST08:30
It has emerged overnight that Volkswagen told customers in California five months ago that their emissions software needed upgrading.It has emerged overnight that Volkswagen told customers in California five months ago that their emissions software needed upgrading.
Reuters has the story:Reuters has the story:
In April of 2015, Volkswagen of America sent letters to California owners of diesel-powered Audis and Volkswagens informing them of an “emissions service action” affecting the vehicles.In April of 2015, Volkswagen of America sent letters to California owners of diesel-powered Audis and Volkswagens informing them of an “emissions service action” affecting the vehicles.
Owners were told they would need to take their cars to a dealer for new software to ensure tailpipe emissions were “optimised and operating efficiently.”Owners were told they would need to take their cars to a dealer for new software to ensure tailpipe emissions were “optimised and operating efficiently.”
The company didn’t explain that it was taking the action in hopes of satisfying government regulators, who were growing increasingly sceptical about the reason for discrepancies between laboratory emissions test results and real world pollution from Volkswagen’s diesel cars.The company didn’t explain that it was taking the action in hopes of satisfying government regulators, who were growing increasingly sceptical about the reason for discrepancies between laboratory emissions test results and real world pollution from Volkswagen’s diesel cars.
However, the fix did not address those concerns, regulators say.However, the fix did not address those concerns, regulators say.
This raises even more questions about how long Volkswagen has been aware of the issue, and how high up the management chain the concerns went. Here’s the full story.This raises even more questions about how long Volkswagen has been aware of the issue, and how high up the management chain the concerns went. Here’s the full story.
Updated at 8.31am BSTUpdated at 8.31am BST
8.20am BST08:208.20am BST08:20
The Volkswagen crisis has shown that corporate governance at the carmaker failed badly, and other company bosses must be worried.The Volkswagen crisis has shown that corporate governance at the carmaker failed badly, and other company bosses must be worried.
Nick Anderson of Henderson Global Investors tells Bloomberg TV:Nick Anderson of Henderson Global Investors tells Bloomberg TV:
Every CEO in Europe must be thinking about the culture in their business, and their whistle-blowing policy.Every CEO in Europe must be thinking about the culture in their business, and their whistle-blowing policy.
Henderson predicts that Volkswagen could lose 3 to 4% of market share, based on previous car scandals, and also lose pricing power - meaning new VW’s will be cheaper.Henderson predicts that Volkswagen could lose 3 to 4% of market share, based on previous car scandals, and also lose pricing power - meaning new VW’s will be cheaper.
8.15am BST08:158.15am BST08:15
VW shares rise 3.5% in early tradingVW shares rise 3.5% in early trading
Shares in Volkswagen have risen around 3.5% at the start of trading in Frankfurt, as investors continue to welcome Winterkorn’s departure.Shares in Volkswagen have risen around 3.5% at the start of trading in Frankfurt, as investors continue to welcome Winterkorn’s departure.
They’re still down around 25% since the scandal broke, though.They’re still down around 25% since the scandal broke, though.
Volkswagen shares trade 3.5% higher after open despite or b/c several broker downgrades. pic.twitter.com/esiovQ1wGjVolkswagen shares trade 3.5% higher after open despite or b/c several broker downgrades. pic.twitter.com/esiovQ1wGj
8.08am BST08:088.08am BST08:08
Volkswagen CEO leaves with huge pensionVolkswagen CEO leaves with huge pension
Martin Winterkorn is walking away from Volkswagen with a massive pension pot worth over €28m.Martin Winterkorn is walking away from Volkswagen with a massive pension pot worth over €28m.
And as he stepped down, rather than being fired, he could also collect two years pay despite the emissions scandal.And as he stepped down, rather than being fired, he could also collect two years pay despite the emissions scandal.
Bloomberg explains:Bloomberg explains:
After Winterkorn disclosed Wednesday that he had asked the board to terminate his role, company spokesman Claus-Peter Tiemann declined to comment on how much money the departing CEO stands to get. Volkswagen’s most recent annual report outlines how Winterkorn, its leader since 2007, could theoretically collect two significant payouts.After Winterkorn disclosed Wednesday that he had asked the board to terminate his role, company spokesman Claus-Peter Tiemann declined to comment on how much money the departing CEO stands to get. Volkswagen’s most recent annual report outlines how Winterkorn, its leader since 2007, could theoretically collect two significant payouts.
Winterkorn’s pension had a value of €28.6m at the end of last year, according to the report, which doesn’t describe any conditions that would lead the company to withhold it. And under certain circumstances, he also can collect severance equal to two years of “remuneration.”Winterkorn’s pension had a value of €28.6m at the end of last year, according to the report, which doesn’t describe any conditions that would lead the company to withhold it. And under certain circumstances, he also can collect severance equal to two years of “remuneration.”
He was Germany’s second-highest paid CEO last year, receiving a total of €16.6m in compensation from the company and majority shareholder Porsche SE.He was Germany’s second-highest paid CEO last year, receiving a total of €16.6m in compensation from the company and majority shareholder Porsche SE.
Martin Winterkorn likely to leave #Volkswagen with €28.6 million ($32 million) pension http://t.co/1MKPa3qhrO pic.twitter.com/e2nh8ihwhPMartin Winterkorn likely to leave #Volkswagen with €28.6 million ($32 million) pension http://t.co/1MKPa3qhrO pic.twitter.com/e2nh8ihwhP
8.00am BST08:008.00am BST08:00
The Volkswagen scandal could even hurt growth across Europe, if other carmakers are drawn in.The Volkswagen scandal could even hurt growth across Europe, if other carmakers are drawn in.
Rabobank strategist Jane Foley believes it could even hurt the value of the euro - if investors are scared away from Europe.Rabobank strategist Jane Foley believes it could even hurt the value of the euro - if investors are scared away from Europe.
She told Bloomberg TV:She told Bloomberg TV:
We don’t know that other carmakers aren’t going to be drawn into this scandal, we need to see how this develops.We don’t know that other carmakers aren’t going to be drawn into this scandal, we need to see how this develops.
One in six people in Germany are employed in the auto-related sector, by some measures, she adds, making them vulnerable if German exports suffer.One in six people in Germany are employed in the auto-related sector, by some measures, she adds, making them vulnerable if German exports suffer.
Foley warns:Foley warns:
It has the potential to spread. If it does, it certainly could affect European growth, and then the euro too.It has the potential to spread. If it does, it certainly could affect European growth, and then the euro too.
Updated at 9.57am BSTUpdated at 9.57am BST
7.51am BST07:517.51am BST07:51
ING: VW is biggest risk to German economyING: VW is biggest risk to German economy
The Volkswagen scandal could become the biggest threat to German economic growth, if consumers lose faith in its cars.The Volkswagen scandal could become the biggest threat to German economic growth, if consumers lose faith in its cars.
ING chief economist Carsten Brzeski argues that the whole country could suffer:ING chief economist Carsten Brzeski argues that the whole country could suffer:
“All of a sudden, Volkswagen has become a bigger downside risk for the German economy than the Greek debt crisis.”“All of a sudden, Volkswagen has become a bigger downside risk for the German economy than the Greek debt crisis.”
“If Volkswagen’s sales were to plunge in North America in the coming months, this would not only have an impact on the company, but on the German economy as a whole.”“If Volkswagen’s sales were to plunge in North America in the coming months, this would not only have an impact on the company, but on the German economy as a whole.”
The German economy has defied Greece, Eurozone stagnation and China, but can it also stomach a possible fall in VW sales?The German economy has defied Greece, Eurozone stagnation and China, but can it also stomach a possible fall in VW sales?
7.33am BST07:337.33am BST07:33
Introduction: German car industry faces crisisIntroduction: German car industry faces crisis
Good morning.Good morning.
Germany is reeling from the unfolding scandal at Volkswagen scandal today, after the company’s chief executive was forced to resign last night.Germany is reeling from the unfolding scandal at Volkswagen scandal today, after the company’s chief executive was forced to resign last night.
The revelations that VW deliberately used a “defeat device” to rig diesel emissions test is turning into Germany’s biggest corporate crisis in decades.The revelations that VW deliberately used a “defeat device” to rig diesel emissions test is turning into Germany’s biggest corporate crisis in decades.
Berlin’s Tagesspiegel newspaper has summed up the sense of rising panic in Germany, saying:Berlin’s Tagesspiegel newspaper has summed up the sense of rising panic in Germany, saying:
“Germany’s entire auto industry is at stake here. And when it’s at stake, almost everything’s at stake.”“Germany’s entire auto industry is at stake here. And when it’s at stake, almost everything’s at stake.”
Volkswagen is now searching for a new CEO, following Martin Winterkorn’s resignation.Volkswagen is now searching for a new CEO, following Martin Winterkorn’s resignation.
Guardian front page, Thursday 24 September 2015: Scandal claims VW chief as lawyers circle pic.twitter.com/jYMQqIPc5XGuardian front page, Thursday 24 September 2015: Scandal claims VW chief as lawyers circle pic.twitter.com/jYMQqIPc5X
The company faces massive fines from regulators, as lawyers prepare class action lawsuits from VW consumers whose diesel cars proved rather less environmentally friendly than promised.The company faces massive fines from regulators, as lawyers prepare class action lawsuits from VW consumers whose diesel cars proved rather less environmentally friendly than promised.
Related: Volkswagen chief quits over emissions scandal as car industry faces crisisRelated: Volkswagen chief quits over emissions scandal as car industry faces crisis
As we covered in yesterday’s liveblog, Angela Merkel’s government is facing tough questions about what it knew, and when. The German Green party says ministers were aware of problems this summer, but didn’t act.As we covered in yesterday’s liveblog, Angela Merkel’s government is facing tough questions about what it knew, and when. The German Green party says ministers were aware of problems this summer, but didn’t act.
Politico have dubbed it “Merkel’s car nightmare”, potentially more harmful to her chancellorship than Greece or the refugee crisis.Politico have dubbed it “Merkel’s car nightmare”, potentially more harmful to her chancellorship than Greece or the refugee crisis.
We’ll be tracking the latest developments through the day....We’ll be tracking the latest developments through the day....
Updated at 1.21pm BSTUpdated at 1.21pm BST