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VW must consider compensating motorists for emissions scandal, transport secretary says VW must consider compensating motorists for emissions scandal, transport secretary says
(about 4 hours later)
Volkswagen must consider offering compensation to motorists whose VW vehicle has suffered a decline in resale value as a result of the diesel emissions scandal, the transport secretary has said. Volkswagen must consider offering compensation to motorists whose VW vehicle has lost some of its resale value as a result of the diesel emissions scandal, the transport secretary has said.
Speaking in the House of Commons, Patrick McLoughlin said the German company would have to address the impact of the scandal on secondhand VW diesel prices. VW has admitted that 1.2m vehicles in the UK have been fitted with the defeat devices. Speaking in the House of Commons, Patrick McLoughlin said the German company would have to address the impact of the scandal on secondhand VW diesel prices. VW has admitted that 1.2m cars and commercial vehicles in the UK have been fitted with the defeat devices that allowed them to cheat emissions tests.
When asked by Jim Shannon, DUP MP for Strangford, whether VW should meet the “full financial implications” of falling resale values, McLoughlin said: “That is one of the issues which I think VW will have to address in due course.” When asked by Jim Shannon, Democratic Unionist MP for Strangford, whether VW should meet the “full financial implications” of falling resale values, McLoughlin said: “That is one of the issues which I think VW will have to address in due course.”
Related: VW deserves to suffer substantial damage, UK minister saysRelated: VW deserves to suffer substantial damage, UK minister says
The transport secretary also pledged to push VW to fix the affected vehicles by the end of 2016. “I will be looking to Volkswagen who have, it has to be said, acted disgracefully in this whole episode, to ensure that they live up to the expectations which they promised originally,” McLoughlin said. “We will be working to make sure that does happen.”The transport secretary also pledged to push VW to fix the affected vehicles by the end of 2016. “I will be looking to Volkswagen who have, it has to be said, acted disgracefully in this whole episode, to ensure that they live up to the expectations which they promised originally,” McLoughlin said. “We will be working to make sure that does happen.”
VW has admitted that 11m vehicles around the world were fitted with a defeat device that allowed them to cheat diesel emissions tests. The carmaker has put aside €6.7bn (£4.4bn) to meet the costs of recalling the vehicles, but also faces the threat of fines and legal action from shareholders and customers. VW has admitted that 11m vehicles around the world were fitted with a defeat device. The carmaker has put aside €6.7bn (£4.4bn) to meet the costs of recalling the vehicles, but also faces the threat of fines and legal action from shareholders and customers.
The company has hired accountancy firm Deloitte and law firm Jones Day to investigate who fitted the device into its vehicles. It is understood that the carmaker believes a group of between 10 and 20 employees were at the heart of the scandal.
The transport secretary said the automotive industry would take steps to ensure that a similar scandal never happens again. He said: “Industry across the piece, as far as this is concerned, is very embarrassed about what has happened and I am pretty sure they will take proper action to make sure the right regulatory measures are taken.”The transport secretary said the automotive industry would take steps to ensure that a similar scandal never happens again. He said: “Industry across the piece, as far as this is concerned, is very embarrassed about what has happened and I am pretty sure they will take proper action to make sure the right regulatory measures are taken.”
No other carmaker has admitted using defeat devices, but there remain concerns among campaigners about discrepancies between test results and the on-road performance of certain vehicles.
McLoughlin defended plans for new emissions tests in Europe which will come into force from 2017. Critics have claimed the new regime is not strict enough. Carmakers will be allowed to exceed the legal limit for nitrogen oxide emissions by 110% between 2017 and 2020, and then by 50% after that, a move designed to give the industry time to adapt.
McLoughlin said: “The current difference between laboratory testing and real world emissions is unacceptable.
“The UK has been actively pressing Europe to address this problem and the agreement we secured in Brussels to introduce real-world testing in 2017 is an important milestone.
“What is important is that we got agreement for real-world emission testing right across the whole of Europe and this has been something which has been objected to in the past. We pressed for it in May. I am very pleased that we achieved it.”