VW’s CO2 crisis Claimed figures set too low

Volkswagen Group boss Matthias Müller: “This is a painful process”

VW rocked by CO2 revelations

Beleaguered firm says CO2 and economy figures of 800,000 petrol and diesel cars were set too low

The Volkswagen Group has been plunged into further crisis after admitting that up to 800,000 petrol and diesel-engined cars have had their CO2 and fuel economy ratings wrongly certified.

In a statement, VW said: “Under the ongoing review of all processes and workflows in connection with diesel engines, it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process. The majority of the vehicles concerned have diesel engines.”

VW pledged to “immediately start a dialogue with the responsible type approval agencies regarding the consequences of these findings”. The statement also described the situation as a “not yet fully explained issue”.

A spokesman has confirmed that the latest scandal affects Audi, Seat, Skoda and VW cars with what are described as “small” engines. Reports suggest that cars powered by the 1.4-litre four-cylinder petrol engine with cylinder deactivation technology are affected. Further reports suggest that VW Bluemotion models with three and fourcylinder diesel engines are also affected.

The company said it has set aside €2 billion (£1.4bn) to cover the cost of this latest revelation, although it cautioned that it would need to consult officials before fully understanding the legal and economic implications of the discovery. It has not said whether it will compensate owners of affected cars.

Following the latest revelations in the emissions scandal, the price of VW shares dropped dramatically, wiping more than €4bn off the value of the company. Preference shares in Volkswagen were also down by more than 8%. Analysts have said the scandal could eventually cost VW up to €35bn, or two-thirds of its current market value.

Volkswagen Group CEO Matthias Müller said: “From the very start, I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth. That is the basis for the fundamental realignment that Volkswagen needs. The board of management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency.”

Müller emphasised that the safety of the cars affected is in no way compromised.

Meanwhile, the supervisory board of the VW Group issued a separate statement expressing alarm at the latest discovery. It said: “The supervisory board is deeply concerned by the discovery of irregularities found when determining CO2 levels for the type approval of Volkswagen Group vehicles. The supervisory board and the special committee set up for the purpose of clarification will meet in the near future to consult on further measures and consequences. The supervisory board will continue to ensure swift and meticulous clarification. The latest findings must be an incentive for the supervisory board and the board of management to do their utmost to resolve irregularities and rebuild trust.” JIM HOLDER

UK sales in first dip since 2012

MONTHLY NEW CAR registrations in the UK dropped for the first time in more than three and a half years last month as market growth levelled off.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) show that 177,664 cars were registered in October, compared with 179,714 in October 2014 — a fall of 1.1% and the first drop following a record 43 months’ consecutive growth.

The market share for diesel-fuelled cars also fell by 0.5% compared with the same month in 2014, and has dropped by 1.7% in total for the year to date compared with the corresponding 10 months last year.

Registrations of petrol cars rose by 0.2% last month, however, and are up by a full 1% for the year to date.

However, there is a mixed picture for the brands within the Volkswagen Group, suggesting that brand confidence hasn’t necessarily been hit by the ongoing scandal.

Volkswagen’s market share compared with October 2014 decreased by 9.84% last month, but rivals Ford and Vauxhall also posted market share losses.

Audi enjoyed a mild uplift in market share of 2.24%, but Skoda was down by 3.03% and Seat by 32.23%.