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VW chief voices doubts to US Congress over board's claims in emissions scandal VW chief voices doubts to US Congress over board's claims in emissions scandal
(about 1 hour later)
Volkswagen’s US boss admitted on Thursday that he too struggles with the car company’s claims that two rogue software engineers were responsible for its global car emissions fixing scandal. Volkswagen’s US boss on Thursday said he felt personally deceived by the emissions rigging scandal that has engulfed the carmaker and admitted he found it “hard to believe” that just two rogue engineers were at the root of the furore.
Called before US Congress to explain why the world’s largest car company had rigged its software to fool US emissions tests, the Volkswagen of America CEO, Michael Horn, was repeatedly pressed on claims that VW’s board did not know about the scandal. Michael Horn told a congressional hearing in Washington that it was wrong for companies to put profits before people. His appearance came just hours after police raided Volkswagen’s headquarters in Germany on Thursday as part of their investigation into the scandal.
“Do you really believe as good, as well run as Volkswagen has always been reputed to be, that senior-level corporate managers and administrators had no knowledge for years and years?” asked Joe Barton, Texas congressman and member of the House committee on energy and commerce. At times Horn struggled to maintain his composure and told lawmakers he was unable to sleep at night following revelations that 11m diesel VW vehicles worldwide have been fitted with a defeat device designed to cheat emissions tests. “I have worked for 25 years for this company,” said the German-born executive. “Integrity, quality and not cheating was always for me a given for this company,” he said. “I don’t sleep at night.”
“I almost don’t know what to say,” said Michael Burgess, another Texas congressman. He expressed incredulity that “this could happen at a large multinational company” and no senior executives could be aware. Chris Collins, a representative from New York, told Horn that he “categorically” rejected the idea that lowly software engineers were solely responsible and that VW was either incompetent or involved in a “massive cover-up”. At first Horn kept to the VW line that two rogue software engineers were responsible for the deception, but under tough questioning by members of the House committee on energy and commerce he admitted that he too found it difficult to believe. Chris Collins, a representative from New York, told Horn that he “categorically” rejected the idea that lowly software engineers were solely responsible and that VW was either incompetent or involved in a “massive cover-up”.
“I agree it’s very hard to believe,” said Horn. “Personally I struggle as well.” Horn said he felt personally deceived by the scandal, which affects 11m cars globally and has led to the recall of 500,000 vehicles in the US. “I have worked for 25 years for this company,” he said. “Integrity, quality and not cheating was always for me a given for this company,” he said. “I don’t sleep at night.” “I agree it’s very hard to believe,” said Horn. “Personally I struggle as well.”
The company faces fines of up to $18bn (£15.9bn) from US regulators and a rash of lawsuits from angry customers as well as investigations from regulators across the world.The company faces fines of up to $18bn (£15.9bn) from US regulators and a rash of lawsuits from angry customers as well as investigations from regulators across the world.
Police raided Volkswagen’s headquarters in Germany on Thursday as part of their investigation into the scandal. The raids were aimed at finding “secure documents and data carriers” that could identify VW staff involved in manipulating diesel emissions tests, prosecutors in Braunschweig, Lower Saxony, said in a statement.
Sigmar Gabriel, the vice-chancellor of Germany and also the economy minister, visited VW’s base in Wolfsburg on Thursday to address staff. “I think it is important to send the message that, in the end, the employees must not pay the price for criminal behaviour by managers,” he told workers.
Horn said the scandal would cost VW “a whole lot of money”. The company has set aside £6.5bn ($7.3bn). “Maybe this is enough. Maybe this is not enough. I don’t know,” Horn said.Horn said the scandal would cost VW “a whole lot of money”. The company has set aside £6.5bn ($7.3bn). “Maybe this is enough. Maybe this is not enough. I don’t know,” Horn said.
Horn said that he personally was unaware of the emissions rigging software despite hearing about issues with emissions compliance as early as spring 2014. “Let me be very clear about this: while I was told about the EPA process, I was not then told, nor did I have any reason to suspect, that our vehicles included such a device,” Horn said. Horn said that he personally was unaware of the emissions rigging software despite hearing about issues with emissions compliance as early as spring 2014. “Let me be very clear about this: while I was told about the EPA [US Environmental Protection Agency] process, I was not then told, nor did I have any reason to suspect, that our vehicles included such a device,” Horn said.
In the spring of 2014 a West Virginia University research team found higher nitrogen oxides emissions in two Volkswagen cars. “At that time, I had no understanding of what a defeat device was,” Horn said. In the spring of 2014 a West Virginia University research team found higher nitrogen oxide emissions in two Volkswagen cars. “At that time, I had no understanding of what a defeat device was,” Horn said.
A Guardian analysis suggests that rigging the emissions tests means VW may be responsible for adding nearly 1m tonnes of air pollution every year. The affected cars were pumping out up to 40 times the amounts of pollution allowed under the US’s clean air act. Under the terms of act the Justice Department could impose fines of as much as $37,500 (£24,545) for each recalled vehicle, a possible total penalty of $18bn (£15.9bn) before any other fines and close to the record $20bn (£17.7bn) that BP was fined for the Deepwater Horizon disaster. A Guardian analysis suggests that rigging the emissions tests means VW may be responsible for adding nearly 1m tonnes of air pollution every year. The affected cars were pumping out 40 times the amounts of pollution allowed under the US’s clean air act. Under the terms of act the Justice Department could impose fines of as much as $37,500 (£24,545) for each recalled vehicle, a possible total penalty of $18bn (£15.9bn) before any other fines and close to the record $20bn (£17.7bn) that BP was fined for the Deepwater Horizon disaster.
“We’re here because Volkswagen lied,” said representative Frank Pallone. Following on from hearings into scandals at GM, Toyota and air bag manufacturer Takata, Pallone said the latest hearing made him wonder “how much we should trust the auto industry in general”. “We’re here because Volkswagen lied,” said New Jersey representative Frank Pallone. Following on from hearings into scandals at GM, Toyota and air bag manufacturer Takata, Pallone said the latest hearing made him wonder “how much we should trust the auto industry in general”.
“This seems to be a pervasive culture of deception in the auto industry and it needs to stop now,” he said.“This seems to be a pervasive culture of deception in the auto industry and it needs to stop now,” he said.
Horn reiterated that all the affected cars were safe to drive and said the automaker would fix the US diesel cars involved in the scandal, not buy them back from consumers, but he did not give a timeline for repairs. Horn also said the company would not be buying back inventory from dealers. Horn said it would take years for VW to fix its issues. Horn reiterated that all the affected cars were safe to drive and said the automaker would fix the US diesel cars involved in the scandal.
Volkswagen’s new boss, Matthias Müller, is expected to make a trip to the US shortly in an attempt to repair the immense damage the scandal has wrought with customers, dealers and officials. Last Sunday, Volkswagen took out full-page ads in Germany’s Sunday papers to say: “We will do everything possible to win back your trust.” Underlining the uphill task to winning back confidence, Congressman Peter Welch said: “VW is the Lance Armstrong of the auto industry” - a reference to the US cyclist who was stripped of seven consecutive Tour de France titles after he was caught doping.
Meanwhile, raids at Volkwagen’s Wolfsburg base in Germanywere aimed at finding documents that could identify VW staff involved in manipulating diesel emissions tests, said prosecutors in Lower Saxony.
The German prosecutors said: “Today, in connection with the so-called emissions scandal, raids were carried out at Volkswagen in Wolfsburg and other locations. The raids aimed to secure documents and data carriers that, in view of possible offences, can provide information about the exact conduct of company employees and their identities in the manipulation of exhaust emissions of diesel vehicles.”
Sigmar Gabriel, the vice-chancellor of Germany and also the economy minister, also visited Wolfsburg on Thursday to address staff. “I think it is important to send the message that, in the end, the employees must not pay the price for criminal behaviour by managers,” he told workers.