Volkswagen emissions scandal escalates as 11 millon vehicles implicated 23 September 2015

As the Volkswagen emissions cheating scandal escalates from half a million cars implicated in the US – and now being recalled – to the automotive and CV giant admitting to 11 million diesel engined vehicles carrying its test ‘defeat’ software, the SMMT (society of Motor Manufacturers and Traders) has issued a statement.

“The UK automotive industry understands the concerns consumers may have following the actions of one manufacturer in regard to emissions testing and the subsequent decision to recall a large number of its cars,” states SMMT chief executive Mike Hawes .

“This is, however, an issue affecting just one company and there is no evidence to suggest that any other company is involved, let alone that this is an industry-wide issue,” he continues.

“Consumers should be reassured that cars sold in the UK must comply with strict European laws. All cars must complete a standard emissions test, which, unlike in the US, is independently witnessed by a government-appointed independent agency.”

Hawes goes on to emphasise that the on-going debate around real-world emissions and fuel economy testing is a separate matter.

“The industry accepts that the current test method for cars is out of date and is seeking agreement from the European Commission for a new emissions test that embraces new testing technologies and which is more representative of on-road conditions.”

Meanwhile, VW has set aside €6.5 billion (£4.7 billion), which it believes will cover the costs of the recall in the US and recovering its reputational damage.

However, with the US Environmental Protection Agency (EPA) estimating fines for each non compliant vehicle at up to $37,500 (£24,000) and 482,000 cars implicated, US fines alone could reach $18 billion (£11,5 billion).

Meanwhile, the company is also facing potential criminal actions in the US from the Department of Justice.

And in Europe, French and Italian ministers have joined the UK’s Transport Secretary Patrick McLoughlin in calling for enquiries.

VW’s stock market valuation has collapsed by 30% already this week.

No other car manufactures are implicated, much less heavy-duty diesel engine commercial vehicle manufactures, whose vehicles now face more emissions rigorous testing at Euro 6.

Author
Brian Tinham

Related Companies
Volkswagen Audi Group UK Ltd

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