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VW UK boss questioned by MPs on emissions scandal -live VW UK boss questioned by MPs on emissions scandal – live
(35 minutes later)
4.17pm BST16:17
Ahead of the hearings, here’s our piece earlier from Archie Bland looking at various past corporate crises, from Enron to Northern Rock, and their effect on employees:
Related: 'They may be fighting like rats in a sack' – how to survive a VW-style corporate crisis
4.05pm BST16:05
Paul Willis, the UK managing director of Volkswagen, has been with the company since 2000.
A Northern Irishman, he took up his present role in February 2014, replacing Paul Willcox who left to rejoin Nissan.
Before that Willis was head of sales and marketing for Skoda China, and has also headed up the VW Passenger Cars brand and VW Ireland.
Previously he worked for a range of other car companies including BMW, Toyota and Ford.
So a real industry veteran then. But it’s probably a safe bet he won’t be used to the attention he’s about to get.
3.49pm BST15:49
S&P cuts VW credit rating
Another blow to VW, with Standard & Poor’s cutting the company’s credit rating from A to A- with a negative outlook. Under the circumstances it’s not exactly a shock move. S&P said:
We believe VW’s internal controls have been shown to be inadequate in preventing or identifying alleged illegal behavior in the US and misconduct in other regions.
We believe that VW’s breach of U.S. environmental law and potential other laws outside the US represents a significant reputational and financial risk to VW over the medium term.
Updated at 3.51pm BST
3.41pm BST15:413.41pm BST15:41
Meanwhile the fallout from the scandal has continued to spread.Meanwhile the fallout from the scandal has continued to spread.
The European Investment Bank plans to look at whether any of the European Union loans that VW received were used to rig emissions tests. If so, it could demand the money back.The European Investment Bank plans to look at whether any of the European Union loans that VW received were used to rig emissions tests. If so, it could demand the money back.
Meanwhile VW is recalling 1,950 imported cars in China.Meanwhile VW is recalling 1,950 imported cars in China.
3.35pm BST15:353.35pm BST15:35
The hearing will be on Parliament television, and can be viewed here.The hearing will be on Parliament television, and can be viewed here.
3.10pm BST15:103.10pm BST15:10
VW's British boss and UK transport secretary to be quizzed on emissions scandalVW's British boss and UK transport secretary to be quizzed on emissions scandal
Good afternoon, and welcome to the next stage in the Volkswagen emissions scandal, as the car company’s UK boss and the UK transport secretary separately face MPs to be quizzed about the situation.Good afternoon, and welcome to the next stage in the Volkswagen emissions scandal, as the car company’s UK boss and the UK transport secretary separately face MPs to be quizzed about the situation.
As a reminder, the German company has admitted that 11m of its vehicles around the world were fitted with software which cheated emissions tests. The discovery of these “defeat devices” was made by US environmental regulators. It means the cars passed the tests by having their engines switched to a cleaner mode, but once on the road they churned out nitrogen oxide pollutants well above the legal limit.As a reminder, the German company has admitted that 11m of its vehicles around the world were fitted with software which cheated emissions tests. The discovery of these “defeat devices” was made by US environmental regulators. It means the cars passed the tests by having their engines switched to a cleaner mode, but once on the road they churned out nitrogen oxide pollutants well above the legal limit.
Close to 1.2m cars are affected in the UK, and VW has promised to start recalling vehicles next year with the aim of having them fixed by the end of 2016.Close to 1.2m cars are affected in the UK, and VW has promised to start recalling vehicles next year with the aim of having them fixed by the end of 2016.
But many questions remain. How far up the management chain did the cheating go? Were European tests also rigged? How will owners of VW Group cars be affected? How will the cars be repaired and how will they perform afterwards? What happens to drivers who ignore the recall? What did the UK government know and when?But many questions remain. How far up the management chain did the cheating go? Were European tests also rigged? How will owners of VW Group cars be affected? How will the cars be repaired and how will they perform afterwards? What happens to drivers who ignore the recall? What did the UK government know and when?
The company’s US boss Michael Horn was up before a congressional hearing last week, and admitted he found it hard to believe that just two rogue engineers were behind the debacle.The company’s US boss Michael Horn was up before a congressional hearing last week, and admitted he found it hard to believe that just two rogue engineers were behind the debacle.
Today it is the turn of Paul Willis, managing director of VW Group UK, to face a grilling. He will be questioned by MPs at the transport select committee, along with Mike Hawes, chief executive of the Society of Motor Manufactures and Traders.Today it is the turn of Paul Willis, managing director of VW Group UK, to face a grilling. He will be questioned by MPs at the transport select committee, along with Mike Hawes, chief executive of the Society of Motor Manufactures and Traders.
After those two, MPs will turn their attention to transport secretary Patrick McLoughlin, alongside two colleagues from his department, Michael Hurwitz and Ian Yarnold, as well as Paul Higgs, chief executive of the vehicle certification agency.After those two, MPs will turn their attention to transport secretary Patrick McLoughlin, alongside two colleagues from his department, Michael Hurwitz and Ian Yarnold, as well as Paul Higgs, chief executive of the vehicle certification agency.
MPs want to hear what action VW is taking, as well as evidence from the SMMT on the wider effects on the motoring sector.MPs want to hear what action VW is taking, as well as evidence from the SMMT on the wider effects on the motoring sector.
Higgs and McLoughlin will be asked what steps the government is taking to restore public confidence in the vehicle testing regime. The minister is also likely to face questions about reports that civil servants in the department of environment were aware of discrepancies in emissions tests two years ago.Higgs and McLoughlin will be asked what steps the government is taking to restore public confidence in the vehicle testing regime. The minister is also likely to face questions about reports that civil servants in the department of environment were aware of discrepancies in emissions tests two years ago.
The committee is to be chaired by Labour MP Louise Ellman, and it is all due to kick off at 16.30 BST.The committee is to be chaired by Labour MP Louise Ellman, and it is all due to kick off at 16.30 BST.
Updated at 3.27pm BSTUpdated at 3.27pm BST