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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)
4.54pm BST16:54
Question to Mike Hawes of SMMT, about carmakers trying to rig tests.
He has never heard of manufacturers trying to rig test in his 20 years in industry.
4.52pm BST16:52
Why should government - ie my constituents - pay for VWs con, for retesting, asks SNP’s Stewart McDonald.
Willis says there should be discussions with regulators about paying for re-testing.
4.48pm BST16:48
MPs are getting a little tetchy.
If public can’t trust you on emissions why should they trust you on safety?
Willis says his family drives VW cars.
4.47pm BST16:47
How do you know it has not affected safety?
This is a different issue.
The testing regime in not fit for purpose, and is in discussion for reform.
Regime for safety is much closer to the real world.
4.46pm BST16:46
Can two rogue engineers be responsible?
I have no idea, we have to get to bottom of the issue.
Updated at 4.48pm BST
4.45pm BST16:45
How many people work on software in Germany?
Willis says he does not know, he does not work directly with that area.
Updated at 4.49pm BST
4.45pm BST16:45
We are determined to find out who, when and why were involved.
4.44pm BST16:44
Robert Flello, Labour MP, asks if software is the problem, why refit parts?
The software regulated the flow of gas... injectors need to be fixed in 400,000 cars.
Updated at 4.49pm BST
4.41pm BST16:41
Willis says, in response to questioning from chair Louise Ellman, that there were 8 days between becoming aware and knowing which vehicles on sale were affected.
He says there are question marks over how strong the testing regime is.
4.40pm BST16:40
First car with defeat device sold in UK in 2008
The first cars sold in the UK with defeat devices were sold in 2008, he said.
I only knew on 19 September when I heard the news from the US.
On 22 September I received news from Wolfsburg there were issues with diesel in Europe.
Updated at 4.50pm BST
4.37pm BST16:37
And we’re about to start:
Paul Willis is making an opening statement.
He apologies unreservedly that VW let down customers and the wider industry.
We have fallen short of the standards expected, we will take all the necessary steps to regain trust.
My colleagues in Germany are working on a precise technical solution.
On 30 September I announced to customers how to get information. All will get a personal letter.
4.17pm BST16:174.17pm 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: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 crisisRelated: 'They may be fighting like rats in a sack' – how to survive a VW-style corporate crisis
4.05pm BST16:054.05pm BST16:05
Paul Willis, the UK managing director of Volkswagen, has been with the company since 2000.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.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.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.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.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 BST15:493.49pm BST15:49
S&P cuts VW credit ratingS&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: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 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.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 BSTUpdated 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