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VW drivers' lawyer condemns carmaker for 'staggering' lack of information VW drivers' lawyer condemns carmaker for 'staggering' lack of information
(about 5 hours later)
Volkswagen’s plan to recall cars affected by the diesel emissions scandal is lamentable and the lack of information being provided to customers is staggering, lawyers representing motorists have said.Volkswagen’s plan to recall cars affected by the diesel emissions scandal is lamentable and the lack of information being provided to customers is staggering, lawyers representing motorists have said.
Matthias Müller, chief executive of VW, told a German newspaper that the company will launch a recall of the 11m affected cars in January and complete the fix by the end of next year. Matthias Müller, chief executive of VW, told a German newspaper the company would launch a recall of the 11m affected cars in January and complete the fix by the end of next year.
He said a software update could fix many of the cars fitted with a “defeat device” to cheat emissions tests, but some could require new injectors and catalysers, with temporary workshops potentially set up to deal with complex cases. He said a software update could fix many of the cars fitted with a “defeat device” to cheat emissions tests, but some could require new injectors and catalysers. Temporary workshops could be set up to deal with complex cases.
The company is to submit its plan to fix the vehicles to regulators in Germany on Wednesday, but VW motorists remain in the dark about what will happen to their cars. In a further blow to the crisis-hit German company, the influential US Senate finance committee said on Wednesday it was investigating whether VW used the defeat devices to benefit from $50m (£33m) of tax credits on diesel cars sold in the US.
Bozena Michalowska-Howells at law firm Leigh Day, which is representing more than 1,200 VW drivers considering legal action against the company, said the carmaker needed to explain how exactly it will repair the vehicles. VW and the buyers of its diesel cars benefited from more than $50m in subsidies in the belief the vehicles caused less pollution then they actually did.
“The way in which this is being handled by Volkswagen is staggering,” she said. “Rather than responding to very serious concerns from their customers, they are providing the minimal information. In a letter sent to VW, Orrin Hatch, chairman of the committee, said the use of the defeat devices to manipulate tests means the company may have made false representations to the US government in securing the tax incentives.
“The latest lamentable statement, given to a German newspaper, does reveal that some customers will need serious interventions to parts of their vehicle. Which cars and what interventions? Meanwhile, VW has confirmed it has appointed Hans Dieter Pötsch, its former finance director, as chairman of the supervisory board – despite calls from stakeholders for an external figure to be appointed chairman.
“How will anyone be able to buy or sell an affected car without knowing this essential information?” The company was due to submit its plan to fix vehicles involved in the scandal to regulators in Germany on Wednesday. However, VW motorists remain in the dark about what will happen to their cars.
Müller told the Frankfurter Allgemeine Zeitung that the scandal was the result of the actions of a few employees and that former chief executive Martin Winterkorn did not know the company was rigging emissions tests. Bozena Michalowska-Howells at law firm Leigh Day, which is representing more than 1,200 VW drivers considering legal action against the company, said the carmaker needed to explain exactly how it would repair the vehicles. “The way in which this is being handled by Volkswagen is staggering. Rather than responding to very serious concerns from their customers, they are providing the minimal information,” she said.
“The latest lamentable statement, given to a German newspaper, does reveal that some customers will need serious interventions to parts of their vehicle. Which cars and what interventions? “How will anyone be able to buy or sell an affected car without knowing this essential information?”
Müller told the Frankfurter Allgemeine Zeitung that scandal was the result of the actions of a few employees and that Martin Winterkorn, the former chief executive, did not know the company was rigging emissions tests.
Four members of staff have been suspended, three of whom were senior managers responsible for engine development, Müller added.Four members of staff have been suspended, three of whom were senior managers responsible for engine development, Müller added.
On the fate of affected vehicles, he said: “If all goes according to plan, we can start the recall in January. All the cars should be fixed by the end of 2016.”On the fate of affected vehicles, he said: “If all goes according to plan, we can start the recall in January. All the cars should be fixed by the end of 2016.”
VW will face further scrutiny on Thursday when Michael Horn, its US boss, appears in front of the energy and commerce committee in Congress.VW will face further scrutiny on Thursday when Michael Horn, its US boss, appears in front of the energy and commerce committee in Congress.
Horn has written to VW’s customers in the US, where the scandal began, to apologise and warn them that it would take “some time” to resolve the issue. Horn has written to VW’s customers in the US, where the scandal began, to apologise and warn them that it will take “some time” to resolve the issue.
VW has put aside €6.5bn (£4.8bn) to meet the cost of recalling the cars and fixing them so they meet environmental standards. It also faces a fine of up to $18bn (£11.9bn) from US regulators as well as legal claims from customers and shareholders. On Monday the UK boss of VW will appear in front of Britain’s transport select committee. Paul Willis will be questioned along with Patrick McLoughlin, the transport secretary, and Mike Hawes, head of the Society of Motor Manufacturers and Traders, the industry trade body.
Müller has told staff that the fallout from the diesel emissions scandal “won’t be painless” and that the company needs to make massive savings as it faces the prospect of a multibillion-euro bill. VW has put aside €6.5bn (£4.8bn) to meet the cost of recalling the cars and fixing them so they meet environmental standards. It also faces a fine of up to $18bn from US regulators as well as legal claims from customers and shareholders.
Müller has told staff the fallout from the diesel emissions scandal “won’t be painless” and that the company needs to make massive savings as it faces the prospect of a multibillion-euro bill.
“It [the €6.5bn] includes the estimated cost to fix the affected vehicles. But it won’t be enough,” he told them at VW’s headquarters in Wolfsburg, Germany. “We must prepare for significant penalties, and many could take the events as an opportunity to claim damages against Volkswagen.“It [the €6.5bn] includes the estimated cost to fix the affected vehicles. But it won’t be enough,” he told them at VW’s headquarters in Wolfsburg, Germany. “We must prepare for significant penalties, and many could take the events as an opportunity to claim damages against Volkswagen.
“That is why we have initiated a further critical review of all planned investments. Anything that is not absolutely necessary will be cancelled or postponed, and it is why we will be intensifying the efficiency programme. To be perfectly frank: this will not be a painless process.”“That is why we have initiated a further critical review of all planned investments. Anything that is not absolutely necessary will be cancelled or postponed, and it is why we will be intensifying the efficiency programme. To be perfectly frank: this will not be a painless process.”