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Head of VW America testifies before US Congress – live updates Head of VW America testifies before US Congress – live updates
(35 minutes later)
4.04pm BST16:04
Will VW buy back the car inventory? asks Marsha Blackburn, representative from Tennessee.
The objective is not to buy back the cars, but to fix them, says Horn.
Has the VW identified the group of people responsible for installing the defeat device? asks Blackburn.
The investigation is ongoing, says Horn.
When do you expect to have plan? Is there a timeline? asks Blackburn.
Horn’s answer is basically: we are working on it.
Blackburn asks if Horn is certain that this will be a multi-year plan.
He says yes. The fix - once agreed on - will take 5 to 10 hours per car. He point out that recalls usually take one to two year when the fix is available and agreed on by all agencies.
4.00pm BST16:00
Dominic Rushe
The hearing doesn’t seem to be impressed with Horn’s “I’m not an engineer” defense. Frank Pallone, New Jersey rep, isn’t convinced that VW has a fix and he’s pointing out that any fix is going to substantially change the cars.
3.59pm BST15:59
Frank Pallone, representative for New Jersey, asks whether the fix from the VW will affect the cars fuel performance and mileage.
If the cars - once fixed - won’t perform as consumers expected, then VW should compensate them, he says.
Horn says compensations and effects on performance will be part of the conversation.
3.54pm BST15:54
Congressman Upton wants to know what the VW is doing for the dealers, who have purchased the affected cars that they now cannot sell to US consumers.
Dealers have “lost a boatload”, says Upton.
Horn says that this concerns him a lot.
“Dealer profitability in this country is my number one objective,” Horn.
Related: VW dealers in US running out of cars to sell as emissions scandal deepens
3.49pm BST15:49
I have a feeling we will be hearing “I am not an engineer” a lot today.
3.47pm BST15:47
Graham Ruddick
Michael Horn’s explanation of how Volkswagen is trying to fix the affected vehicles gave a glimpse into how complex this will be it. As Horn said, if it was easy then VW would not have needed defeat devices in the first place to beat emissions tests. 430,000 of the 482,000 recalled US cars will need software and hardware repairs.
3.43pm BST15:43
“You guys cough here all the time,” Horn said, prompting DeGette to repeat her question.
“You guys cough here all the time."
Updated at 3.45pm BST
3.43pm BST15:43
Dominic Rushe
We can’t hear it on the video feed but apparently there is so much coughing in the room that Horn is having difficulty hearing the questions.
Strategy? Or perhaps there are noxious emissions.
Updated at 3.50pm BST
3.42pm BST15:42
Congresswoman DeGette asks Horn if he understands how the defeat devices work.
“No, I do not. I am not an engineer,” says Horn.
Updated at 3.42pm BST
3.40pm BST15:40
Murphy says he takes no comfort in the idea that just a few people have taken part in the deception regarding emissions rigging software.
According to Horn, investigation has now been turned over to external US law firm Jones Day.
VW is working on both software and hardware solutions.
“This is something that is hardware engineering. It’s complex and it takes a little bit of time,” says Horn.
3.35pm BST15:35
We are done with prepared remarks. Congressman Murphy is begins questioning by asking: Did VW install this software to beat emissions tests?
Horn says that yes, the software was installed to beat emissions tests.
3.32pm BST15:32
“These events are deeply troubling. I did not think that something like this was possible at the Volkswagen Group. We have broken the trust of our customers, dealerships, and employees, as well as the public and regulators,” says Horn.
“We are determined to make things right. This includes accepting the consequences of our acts, providing a remedy, and beginning to restore the trust of our customers, dealerships, employees, the regulators, and the American public. We will rebuild the reputation of a company that more than two million people worldwide, including dealers and suppliers, rely upon for their livelihoods.”
You can read the full prepared remarks here.
3.30pm BST15:30
Michael Horn delivers his testimony
Horn is having a bit of trouble finding the button on his mike.
Oh, here we go.
On behalf of our company, and my colleagues in Germany, I would like to offer a sincere apology for Volkswagen’s use of a software program that served to defeat the regular emissions testing regime.
In the spring of 2014 when the West Virginia University study was published, I was told that there was a possible emissions non-compliance that could be remedied. I was informed that EPA regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include “defeat device” testing or analysis.
Here Horn breaks from his prepared remarks to clarify that he did not have a reason to suspect such software was being used in cars.
Back to the prepared remarks:
I was also informed that the company engineers would work with the agencies to resolve the issue. Later in 2014, I was informed that the technical teams had a specific plan for remedies to bring the vehicles into compliance and that they were engaged with the agencies about the process.
3.25pm BST15:253.25pm BST15:25
Graham RuddickGraham Ruddick
If Michael Horn was in any doubt about the tough ride he faces today, he can have little doubt now. The opening remarks from the committee suggest they want to shame the company, but also want answers about how exactly the scandal happened and who was to blame. Horn will have come prepared to be shamed, but providing answers could be more problematic. The company is facing legal claims around the world and Horn could claim his answers are restricted. That approach won Tony Hayward of BP no friends at all.If Michael Horn was in any doubt about the tough ride he faces today, he can have little doubt now. The opening remarks from the committee suggest they want to shame the company, but also want answers about how exactly the scandal happened and who was to blame. Horn will have come prepared to be shamed, but providing answers could be more problematic. The company is facing legal claims around the world and Horn could claim his answers are restricted. That approach won Tony Hayward of BP no friends at all.
3.24pm BST15:243.24pm BST15:24
Pallone adds that the US consumers should feel safe on the road and that they should get what they paid for.Pallone adds that the US consumers should feel safe on the road and that they should get what they paid for.
They are not “crash test dummies and shouldn’t be treated as such,” says Pallone. He tells Horn: don’t hide behind internal investigation excuse.They are not “crash test dummies and shouldn’t be treated as such,” says Pallone. He tells Horn: don’t hide behind internal investigation excuse.
“We deserve an explanation.”“We deserve an explanation.”
3.22pm BST15:223.22pm BST15:22
We are here because VW lied, says Frank Pallone, representative for New Jersey. He adds that this scandal makes him question how much American public should trust auto industry overall.We are here because VW lied, says Frank Pallone, representative for New Jersey. He adds that this scandal makes him question how much American public should trust auto industry overall.
3.20pm BST15:203.20pm BST15:20
And that makes three.And that makes three.
David McKinley, representative for West Virginia, also admits that his first car was a beetle - a 1957 VW beetle.David McKinley, representative for West Virginia, also admits that his first car was a beetle - a 1957 VW beetle.
3.18pm BST15:183.18pm BST15:18
Dominic RusheDominic Rushe
“VW has betrayed a nation – a nation of regulators, loyalists, and innocent customers,” says Upton. “It’s time to clean it up or get off the road.”“VW has betrayed a nation – a nation of regulators, loyalists, and innocent customers,” says Upton. “It’s time to clean it up or get off the road.”
Updated at 3.19pm BSTUpdated at 3.19pm BST
3.17pm BST15:173.17pm BST15:17
Dominic RusheDominic Rushe
“Cheaters never prosper,” says Fred Upton, representative for Michigan. “If you were willing to cut corners here what else have they done?”“Cheaters never prosper,” says Fred Upton, representative for Michigan. “If you were willing to cut corners here what else have they done?”
3.16pm BST15:163.16pm BST15:16
It appears that Murphy is not the only congressman whose first car was a VW beetle.It appears that Murphy is not the only congressman whose first car was a VW beetle.
Colorado congresswoman Diana DeGette also says her first car was a beetle.Colorado congresswoman Diana DeGette also says her first car was a beetle.
“I still miss the car,” she says.“I still miss the car,” she says.
3.13pm BST15:133.13pm BST15:13
Dominic RusheDominic Rushe
Representative Tim Murphy is setting out the aim’s of the hearing. He wants to know what happened, who was responsible and why they did it. Also why the environmental protection agency (EPA) failed to spot it. Murphy added that the scandal needed a sense of proportion - the recall of 480,000 represent only 0.2% of the vehicles on US roads and he said that so far there was no evidence that VW’s emmisions dodge extends to other manufacturers.Representative Tim Murphy is setting out the aim’s of the hearing. He wants to know what happened, who was responsible and why they did it. Also why the environmental protection agency (EPA) failed to spot it. Murphy added that the scandal needed a sense of proportion - the recall of 480,000 represent only 0.2% of the vehicles on US roads and he said that so far there was no evidence that VW’s emmisions dodge extends to other manufacturers.
Updated at 3.17pm BSTUpdated at 3.17pm BST
3.12pm BST15:123.12pm BST15:12
Murphy points out that Horn is appearing voluntarily and adds that he hopes that VW will continue to cooperate with US congress.Murphy points out that Horn is appearing voluntarily and adds that he hopes that VW will continue to cooperate with US congress.
In his opening remarks, Murphy already laid out multiple questions:In his opening remarks, Murphy already laid out multiple questions:
As I said before, there are a number of core questions we will begin to pursue today, both for Volkswagen and for EPA. Most critically: what happened; who was involved; and why were these deceptive actions taken?As I said before, there are a number of core questions we will begin to pursue today, both for Volkswagen and for EPA. Most critically: what happened; who was involved; and why were these deceptive actions taken?
Horn will be asked explain “the current understanding of VW executives about what exactly was done to these engines, and was it done to deliberately deceive the government regulators? And what is VW doing to fix the problem and make whole those who have been affected by its actions?”Horn will be asked explain “the current understanding of VW executives about what exactly was done to these engines, and was it done to deliberately deceive the government regulators? And what is VW doing to fix the problem and make whole those who have been affected by its actions?”
Murphy also wants to know:Murphy also wants to know:
If the technology was improving, what did the company understand about the software cheat? And what does this mean for fixing these vehicles? Will some be easier than others?If the technology was improving, what did the company understand about the software cheat? And what does this mean for fixing these vehicles? Will some be easier than others?
3.04pm BST15:043.04pm BST15:04
Michael Horn, president and CEO of Volkswagen Group of America, has arrived and the hearing is about to begin.Michael Horn, president and CEO of Volkswagen Group of America, has arrived and the hearing is about to begin.
Horn’s prepared remarks can be found here.Horn’s prepared remarks can be found here.
Pennsylvania congressman Tim Murphy begins the hearing saying that his first car was a Volkswagen beetle.Pennsylvania congressman Tim Murphy begins the hearing saying that his first car was a Volkswagen beetle.
“I loved that car,” says Murphy.“I loved that car,” says Murphy.
2.58pm BST14:582.58pm BST14:58
You can watch the Volkswagen hearing here on C-SPAN:You can watch the Volkswagen hearing here on C-SPAN:
THURSDAY: @HouseCommerce #SubOversight hearing on #Volkswagen emissions issues - LIVE C-SPAN3 http://t.co/4hnnH9SD16 pic.twitter.com/0h2jXRuJkqTHURSDAY: @HouseCommerce #SubOversight hearing on #Volkswagen emissions issues - LIVE C-SPAN3 http://t.co/4hnnH9SD16 pic.twitter.com/0h2jXRuJkq
2.52pm BST14:522.52pm BST14:52
In case you need a refresher before the hearing starts, here is our video that explains what VW did and why:In case you need a refresher before the hearing starts, here is our video that explains what VW did and why:
2.50pm BST14:502.50pm BST14:50
While we have been waiting for the hearing to begin, VW’s headquarters in Wolfsburg, Germany have been raided by officials.While we have been waiting for the hearing to begin, VW’s headquarters in Wolfsburg, Germany have been raided by officials.
Here is what we have so far:Here is what we have so far:
Prosecutors in Braunschweig, Lower Saxony, say the raids were carried out on Thursday in Wolfsburg, where VW has its headquarters, and at other locations.Prosecutors in Braunschweig, Lower Saxony, say the raids were carried out on Thursday in Wolfsburg, where VW has its headquarters, and at other locations.
In a statement, they said the aim of the searches was to “secure documents and data storage devices” that could identify those involved in the alleged manipulation and explain how it was carried out.In a statement, they said the aim of the searches was to “secure documents and data storage devices” that could identify those involved in the alleged manipulation and explain how it was carried out.
Related: German prosecutors raid VW offices in emissions inquiryRelated: German prosecutors raid VW offices in emissions inquiry
2.46pm BST14:462.46pm BST14:46
Michael Horn to testify before congressional committee at 10 amMichael Horn to testify before congressional committee at 10 am
Good morning, welcome to our live blog of today’s hearing on Volkswagen’s emissions-rigging scandal. The hearing, held by the US House committee on energy and commerce, is set to starts at 10am ET.Good morning, welcome to our live blog of today’s hearing on Volkswagen’s emissions-rigging scandal. The hearing, held by the US House committee on energy and commerce, is set to starts at 10am ET.
Michael Horn, president and CEO of Volkswagen (VW) Group of America, will be the first to testify. According to his prepared remarks, he will confirm that he knew of the company’s emission rigging issues as early as spring 2014 and will once again apologize for VW’s use of the rigging software.Michael Horn, president and CEO of Volkswagen (VW) Group of America, will be the first to testify. According to his prepared remarks, he will confirm that he knew of the company’s emission rigging issues as early as spring 2014 and will once again apologize for VW’s use of the rigging software.
The use of the software first came to light in spring 2014 when John German, an automotive engineer, working with the West Virginia University conducted emissions tests on real roads instead of in the lab. He sent a copy of his report to VW – at which time Horn will testify he was told of possible emissions non-compliance.The use of the software first came to light in spring 2014 when John German, an automotive engineer, working with the West Virginia University conducted emissions tests on real roads instead of in the lab. He sent a copy of his report to VW – at which time Horn will testify he was told of possible emissions non-compliance.
It wasn’t until September, however, that the public became aware of this issue. On 18 September, the Environmental Protection Agency (EPA) ordered VW to recall 482,000 four-cylinder Volkswagen and Audi diesel cars. According to the EPA, since 2008 the software allowed those cars to cheat emissions tests while producing up to 40 times more pollution than allowed.It wasn’t until September, however, that the public became aware of this issue. On 18 September, the Environmental Protection Agency (EPA) ordered VW to recall 482,000 four-cylinder Volkswagen and Audi diesel cars. According to the EPA, since 2008 the software allowed those cars to cheat emissions tests while producing up to 40 times more pollution than allowed.
You can read more about Horn’s prepared remarks here:You can read more about Horn’s prepared remarks here:
Related: Head of VW in US will tell Congress he knew of emissions rigging in early 2014Related: Head of VW in US will tell Congress he knew of emissions rigging in early 2014
And you can also read more about John German, the man who helped expose Volkswagen’s emissions scandal, here:And you can also read more about John German, the man who helped expose Volkswagen’s emissions scandal, here:
Related: Meet John German: the man who helped expose Volkswagen's emissions scandalRelated: Meet John German: the man who helped expose Volkswagen's emissions scandal