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VW UK boss questioned by MPs over emissions scandal – live Emissions scandal: VW 'deserves to suffer damage', says UK minister – live
(35 minutes later)
6.04pm BST18:04
Louise Ellman: Is VCA too close to manufacturers?
VCA’s Paul Higgs: during 40 years have been regulator and also requirement to support UK motor industry which is sizeable. Manufacturers have to understand standards.
We are paid by fees, set by legislation, we are required to cover costs of statutory function. So normal in this environment to charge industry for those fees.
Is there a conflict?
Important that manufacturers understand what is required. We only give them an idea of what is required to meet specification or standard.
6.01pm BST18:01
The data car manufacturers publish, in advertisements etc, for average consumer they are meaningless.
McLoughlin: you could say they’re still a guide, but this data is for constant speed of 55. Not sure people drive constantly at 55 miles.
When company like VW does something like this, casts a spotlight on whole industry and they have to put it right.
Real world testing will I hope go some way to reassuring public they can trust in manufacturers.
5.57pm BST17:57
Louise Ellman: there are questions over testing and how accurate they are. What are you doing about problems of testing, have been major criticisms of department, when information was available in 2013, perhaps earlier, about discrepencies, department did not appear to act.
McLoughlin: If test done in home country, approved through whole of Europe. Have to get testing system right, right to push for road testing.
We’ve sent letters to Commission, discussions taking place. Will be a speedier move as a result of this.
Ian Yarnold: on lab test whole new test by 2017, then new test on road testing and we are in closing stages of agreement and implementation.
5.52pm BST17:52
Huw Merriman, Conservative: Has UK considered large fines to disincentivise this type of practice?
In early stages of finding whats gone on what legal powers are available to us. Various areas we can look at.
5.51pm BST17:51
Conservative Mark Menzies: owners of affected vehicles will not have higher vehicle excise duty but will VW compensate government for any lost tax revenues.
McLoughlin: vehicle excise duty based on carbon emissions...Still considering exactily what to do.
5.48pm BST17:48
On pollution, these 1.1m VW cars, if they had run as should, what is the difference in pollution? Says up to 40 times in US?
Department of Transport’s Michael Hurwitz said: We have not yet had information from VW to compare how vehicles do in lab tests compared to real world.
Real issue is that that the lab test is not fit for purpose. Once have run more tests can give more info.
But on this specific issue, pollution probably up by less than 1%?
Yes.
5.44pm BST17:44
McDonald: should there be link between penalties and funding for environmental issues, as a letter sent to you suggested?
McLoughlin: I havent replied as yet but I will consider issue.
Updated at 5.44pm BST
5.43pm BST17:43
Stewart McDonald says are you planning to take a more rigorous view on software. I’m also concerned VW said first device was in 2008. Does Vehicle Certification Agency have the skills?
Some of the cars were not approved by VCA, but VCA can answer this.
We are reacting to a situation which is unacceptable. But we have done more than react, we have been pressing for real world testing. This strengthens the case.
Paul Higgs of VCA:
If you hide a code in the engine management system, it’s like hiding a virus in a programme. Difficult to find.
Far simpler to have a test process going forward that would make it difficult for a defeat device to work.
Updated at 5.43pm BST
5.38pm BST17:38
Conservative Will Quince says trust has been shattered but we are supposed to trust them. Should all motor manufacturer open up their software to regulators.
McLoughlin: We need to move whole dynamic to real world testing. We have been pressing for this for some time. Something like defeat devices would not be applicable under those circumstances.
But don’t think we should judge whole industry on what one player has been doing.
5.34pm BST17:34
Is he satisfied no other manufacturer has used emissions cheating software?
McLoughlin says he is satisfied so far from the responses received from other manufacturers, though some have not yet responded. We expect them by end of month.
Do you accept what they say?
Wouldn’t expect any reputable company to deliberately mislead when asked direct questions.
But committee might have other questions and we will look at what committee requests. It covers a number of departments, not just transport.
5.30pm BST17:30
Labour MP Robert Flello says: Willis says he wasn’t an engineer and didn’t seem to know much which annoyed me. Has Department done any examination of vehicles involved, whether it is software.
Not wanting to encur your wrath.. I’m not an engineer. I’m trying to get to grips with it. But I have colleagues here.
Ian Yarnold of the Department says: We haven’t examined the cars for defeat devices. We are looking at test results.
Mostly we think its a software issue.
5.27pm BST17:275.27pm BST17:27
VW have given us a figure of how many cars with defeat devices. Have you challenged them?VW have given us a figure of how many cars with defeat devices. Have you challenged them?
I have no reason to dispute the figures given, 1.1m. 580,000 VW, 49% affected Skoda 11% Seat 77,00.I have no reason to dispute the figures given, 1.1m. 580,000 VW, 49% affected Skoda 11% Seat 77,00.
I hope they have learned, having being exposed, to be as open as possible.I hope they have learned, having being exposed, to be as open as possible.
Updated at 5.29pm BSTUpdated at 5.29pm BST
5.25pm BST17:255.25pm BST17:25
Now up is Transport secretary Patrick McLoughlin and two members of his department. He is asked when he first knew:Now up is Transport secretary Patrick McLoughlin and two members of his department. He is asked when he first knew:
I became aware of weekend of 18.... when various issues came out of US.I became aware of weekend of 18.... when various issues came out of US.
They behaved appallingly. These devices were made illegal, and they will suffer substantial damage and they deserve to.They behaved appallingly. These devices were made illegal, and they will suffer substantial damage and they deserve to.
5.21pm BST17:215.21pm BST17:21
The session with VW’s Paul Willis and the SMMT’s chief executive Mike Hawes ends.The session with VW’s Paul Willis and the SMMT’s chief executive Mike Hawes ends.
5.19pm BST17:195.19pm BST17:19
Premature to say reputation of industry severely damaged by this, says SMMT’s Hawes.Premature to say reputation of industry severely damaged by this, says SMMT’s Hawes.
5.16pm BST17:165.16pm BST17:16
Implausible senior management knew - VW's WillisImplausible senior management knew - VW's Willis
Do you believe it was a high level corporate decision or rogue engineers.Do you believe it was a high level corporate decision or rogue engineers.
That debate is pure conjecture. I have no idea. I find it implausible that senior people would have known of these issues.That debate is pure conjecture. I have no idea. I find it implausible that senior people would have known of these issues.
Updated at 5.16pm BSTUpdated at 5.16pm BST
5.15pm BST17:155.15pm BST17:15
Dealers want to know, how safe is their job?Dealers want to know, how safe is their job?
In number of brands, sales are as we would expect, VW sales have dropped a little. But we have an obligation to them and to our customers.In number of brands, sales are as we would expect, VW sales have dropped a little. But we have an obligation to them and to our customers.
5.14pm BST17:145.14pm BST17:14
British taxpayer will not be out of pocket - VW's WillisBritish taxpayer will not be out of pocket - VW's Willis
What steps VW taking to compensate Treasury for money spent to correct your deception?What steps VW taking to compensate Treasury for money spent to correct your deception?
We can have a conversation, British taxpayer should not be out of pocket. If necessary we will have a meeting with HMRC.We can have a conversation, British taxpayer should not be out of pocket. If necessary we will have a meeting with HMRC.
5.11pm BST17:115.11pm BST17:11
Willis is told VW has treated customers like fools. What compensation?Willis is told VW has treated customers like fools. What compensation?
We have obligation to fix cars, put them right, cars have same MPG we committed to.We have obligation to fix cars, put them right, cars have same MPG we committed to.
Inconvenience?Inconvenience?
Scottish representative said what about people in rural areas. We will have to provide loan car, cause minimum inconvenience.Scottish representative said what about people in rural areas. We will have to provide loan car, cause minimum inconvenience.
This is a very important issue but this is not a safety issue. We have to make sure we regain trust of customers.This is a very important issue but this is not a safety issue. We have to make sure we regain trust of customers.
In US offering sales incentive to dealers?What about here?In US offering sales incentive to dealers?What about here?
Over 21,000 dealers. We have changed stocking plans, will not charge retailer network interest on that. We will pay customer satisfaction bonuses ourselves.Over 21,000 dealers. We have changed stocking plans, will not charge retailer network interest on that. We will pay customer satisfaction bonuses ourselves.
Our retailers are the backbone of our business, we need to support them. Plus they are at the forefront for customers questions.Our retailers are the backbone of our business, we need to support them. Plus they are at the forefront for customers questions.
Updated at 5.13pm BSTUpdated at 5.13pm BST
5.08pm BST17:085.08pm BST17:08
On US and Europe he said there were different technical specifications.On US and Europe he said there were different technical specifications.
5.08pm BST17:085.08pm BST17:08
How arrive at timeframe of end of 2016?How arrive at timeframe of end of 2016?
Timeline says end of 2016 but it is uncertain. My objective is to get it completed by then, but there is risk involved with that.Timeline says end of 2016 but it is uncertain. My objective is to get it completed by then, but there is risk involved with that.
5.07pm BST17:075.07pm BST17:07
But I’m surprised you can rule out effect on fuel performance?But I’m surprised you can rule out effect on fuel performance?
Didn’t rule it out but it’s the brief to engineer.Didn’t rule it out but it’s the brief to engineer.
5.06pm BST17:065.06pm BST17:06
Why three months for a solution?Why three months for a solution?
Discussions with regulators, so many different models will take time. Better to be thorough than do it in haste.Discussions with regulators, so many different models will take time. Better to be thorough than do it in haste.
But it’s important we write and communicate with customers regularly.But it’s important we write and communicate with customers regularly.
5.05pm BST17:055.05pm BST17:05
We mishandled the test in terms of software. Now software has to be consistent between test and driving.We mishandled the test in terms of software. Now software has to be consistent between test and driving.
5.04pm BST17:045.04pm BST17:04
Will fix affect fuel bills?Will fix affect fuel bills?
Not the case. Brief to engineers is there cannot be any change to MPG.Not the case. Brief to engineers is there cannot be any change to MPG.
5.04pm BST17:045.04pm BST17:04
Louise Ellman: want to know more about what you will do?Louise Ellman: want to know more about what you will do?
Willis: Over the weekend started writing to all the customers. Can find out if your vehicle is affected on the internet. German authorities in discussion with Wolfsburg, expect them to come up with timeline.Willis: Over the weekend started writing to all the customers. Can find out if your vehicle is affected on the internet. German authorities in discussion with Wolfsburg, expect them to come up with timeline.
Between now and end of year we will agree what fix is.Between now and end of year we will agree what fix is.
Then call cars back progressively, first in first quarter with 2 litre engines.Then call cars back progressively, first in first quarter with 2 litre engines.
I intend to contact every single customer in UK. Can’t tell them when exactly we’ll call car back.I intend to contact every single customer in UK. Can’t tell them when exactly we’ll call car back.
We will put these cars right to regain trust.We will put these cars right to regain trust.
5.01pm BST17:015.01pm BST17:01
Will other manufacturers take action against VW for lost sales, because purchasers conned into thinking VW is better? Other manufacturers doing same thing?Will other manufacturers take action against VW for lost sales, because purchasers conned into thinking VW is better? Other manufacturers doing same thing?
Not aware, no evidence any other manufacturer undertaking this activity.Not aware, no evidence any other manufacturer undertaking this activity.
Not aware of any legal action. Perhaps they’re waiting for outcome of investigations.Not aware of any legal action. Perhaps they’re waiting for outcome of investigations.
Updated at 5.01pm BSTUpdated at 5.01pm BST
4.58pm BST16:584.58pm BST16:58
The fix for this will be introduction of test for real world driving conditions. Fit a box to test emissions and rule out ambient emissions.The fix for this will be introduction of test for real world driving conditions. Fit a box to test emissions and rule out ambient emissions.
Plan is for monitoring phase next year, regulation to apply from 2017.Plan is for monitoring phase next year, regulation to apply from 2017.
Updated at 4.59pm BSTUpdated at 4.59pm BST
4.57pm BST16:574.57pm BST16:57
Hawes says he doesn’t think consumer trust is broken. They are aware of published test results, and the results they get on the road.Hawes says he doesn’t think consumer trust is broken. They are aware of published test results, and the results they get on the road.
What is the difference, one or two % or several times?What is the difference, one or two % or several times?
Could be several times. Industry recognises test is not fit for purpose. All devices such as satnav, bluetooth have to be switched off by law, they didn’t exist when tests developed.Could be several times. Industry recognises test is not fit for purpose. All devices such as satnav, bluetooth have to be switched off by law, they didn’t exist when tests developed.
4.54pm BST16:544.54pm BST16:54
Question to Mike Hawes of SMMT, about carmakers trying to rig tests.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.He has never heard of manufacturers trying to rig test in his 20 years in industry.
4.52pm BST16:524.52pm BST16:52
Why should government - ie my constituents - pay for VWs con, for retesting, asks SNP’s Stewart McDonald.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.Willis says there should be discussions with regulators about paying for re-testing.
4.48pm BST16:484.48pm BST16:48
MPs are getting a little tetchy.MPs are getting a little tetchy.
If public can’t trust you on emissions why should they trust you on safety?If public can’t trust you on emissions why should they trust you on safety?
Willis says his family drives VW cars.Willis says his family drives VW cars.
4.47pm BST16:474.47pm BST16:47
How do you know it has not affected safety?How do you know it has not affected safety?
This is a different issue.This is a different issue.
The testing regime in not fit for purpose, and is in discussion for reform.The testing regime in not fit for purpose, and is in discussion for reform.
Regime for safety is much closer to the real world.Regime for safety is much closer to the real world.
4.46pm BST16:464.46pm BST16:46
Can two rogue engineers be responsible?Can two rogue engineers be responsible?
I have no idea, we have to get to bottom of the issue.I have no idea, we have to get to bottom of the issue.
Updated at 4.48pm BSTUpdated at 4.48pm BST
4.45pm BST16:454.45pm BST16:45
How many people work on software in Germany?How many people work on software in Germany?
Willis says he does not know, he does not work directly with that area.Willis says he does not know, he does not work directly with that area.
Updated at 4.49pm BSTUpdated at 4.49pm BST
4.45pm BST16:454.45pm BST16:45
We are determined to find out who, when and why were involved.We are determined to find out who, when and why were involved.
4.44pm BST16:444.44pm BST16:44
Robert Flello, Labour MP, asks if software is the problem, why refit parts?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.The software regulated the flow of gas... injectors need to be fixed in 400,000 cars.
Updated at 4.49pm BSTUpdated at 4.49pm BST
4.41pm BST16:414.41pm 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.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.He says there are question marks over how strong the testing regime is.
4.40pm BST16:404.40pm BST16:40
First car with defeat device sold in UK in 2008First 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.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.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.On 22 September I received news from Wolfsburg there were issues with diesel in Europe.
Updated at 4.50pm BSTUpdated at 4.50pm BST
4.37pm BST16:374.37pm BST16:37
And we’re about to start:And we’re about to start:
Paul Willis is making an opening statement.Paul Willis is making an opening statement.
He apologies unreservedly that VW let down customers and the wider industry.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.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.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.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