The Latest: NY AG Opens Investigation Into Volkswagen Cars | Techno stream

The Latest: NY AG Opens Investigation Into Volkswagen Cars

23 Sep 2015 | Author: | No comments yet »

Everything we know about Volkswagen emissions scandal.

BERLIN (AP) — The latest developments in the scandal enveloping Volkswagen over the company’s admission that it rigged emissions tests for diesel-powered cars. Volkswagen’s emissions scandal ballooned Tuesday as the automaker said it affects 11 million vehicles worldwide and will require the company to set aside 6.5 billion euro ($7.3 billion).The Volkswagen and Audi diesel emissions scandal which has thrown the global car industry into turmoil has spread to Europe and threatens to embroil more models and rival carmakers. The chief executive of Volkswagen AG, the parent company of Porsche, Seat, Skoda, Bentley, Lamborghini and Bugatti as well as VW and Audi, was fighting for his career, after it emerged the firm had fitted 11m vehicles worldwide with a “defeat device” designed to cheat emissions tests.

Volkwagen stunningly admitted that some 11 million of the German carmaker’s diesel vehicles contain software that evades emissions controls, far more than the 482,000 identified by the U.S. Schneiderman says he has opened an investigation into the Volkswagen cars and he will collaborate with other states to enforce consumer and environmental protections in the case. “No company should be allowed to evade our environmental laws or promise consumers a fake bill of goods,” Schneiderman said in a statement announcing the probe. Environmental Protection Agency accused the German automaker of installing illegal software on many of its diesel-engine vehicles to trick regulators into believing the cars were complying with emissions standards when they were actually spewing 40 times the number of harmful pollutants on the road. HOW DID VW DO IT?VW installed special software, called a ‘defeat device,’ on some 2009-2015 model cars equipped with a popular diesel engines so they would comply with the EPA and also California emissions standards The device would activate the cars’ emission controls during testing, but deactivate them in real-world driving. CEO Martin Winterkorn apologized for the deception under his leadership and pledged a fast and thorough investigation, but gave no indication that he might resign. “Millions of people across the world trust our brands, our cars and our technologies,” Winterkorn said Tuesday in a video message. “I am endlessly sorry that we have disappointed this trust.

Senator from Florida is pointing to the Volkswagen emissions deception and other recent auto industry scandals to question why government agencies aren’t better protecting people. I apologize in every way to our customers, to authorities and the whole public for the wrongdoing.” “I do not have the answers to all the questions at this point myself, but we are in the process of clearing up the background relentlessly,” Winterkorn said. By the afternoon of 22 September, the scandal, which originated in California on 18 September, had spread across Europe and in Britain the Department for Transport called for an EU-wide investigation. “It’s vital that the public has confidence in vehicle emissions tests and I am calling for the European Commission to investigate this issue as a matter of urgency,” Transport Secretary Patrick McLoughlin said. Bill Nelson questioned what the Obama administration is doing and why it’s not “dropping the hammer” on corporations and executives who deceive the American people. Nelson says the General Motors ignition switch scandal has cost over 100 lives and faulty air bags made by Takata Corp. can explode with too much force also have killed people.

The world’s largest car makers is now facing a major criminal probe by US Justice Department and could face up to £11.7bn in fines under an EPA probe set up last week. The EPA said Friday that VW faces potential fines of $37,500 per vehicle, and that anyone found personally responsible is subject to $3,750 per violation. It notes the position of the steering wheel, variations in speed and other data that suggest no one is driving the car, and thus it is likely being tested. To make it very clear: manipulation at VW must never happen again.” He was speaking after the firm admitted it had already set aside £4.7bn for product recalls as its shares dropped by almost 20 per cent on 22 September. After blaming unrelated issues for more than a year, the company finally told U.S. regulators on Sept. 3 that it installed software that switches engines to a cleaner mode during official emissions testing.

VW had to meet regulations to sell its cars but emissions control devices lower the car’s performance and fuel economy which are why many people buy the vehicles. And in my German words, we have totally screwed up,” the head of Volkswagen’s U.S. division, Michael Horn, said Monday while unveiling a new Passat model in New York. “We must fix those cars to prevent this from ever happening again, and we have to make things right. The EPA says the software affects the four-cylinder diesel versions of the 2009-2015 Jetta, Beetle, Golf, the 2014 and 2015 Passat and the 2009 to 2015 Audi A3.

With the government, the public, our customers, our employees, and very importantly, with our dealers.” The shockwaves were felt across the sector as traders wondered who else may get embroiled. The German company has not yet explained why so-called “defeat devices” were installed on some diesel models sold between 2008 and this year. “We owe it to our consumers and for the environment. But in the space of 24 hours, Volkswagen has gone from one people could trust to one people don’t know what to think of,” said Nigel Currie, an independent U.K.-based sponsorship and branding consultant. He said VW’s employees are “building the best vehicles for our customers,” and said “it would be wrong to place the hard and honest work of 600,000 people under general suspicion because of the grave mistakes of a few.” The company said the 6.5 billion euros it is setting aside this quarter will cover necessary service measures and “other efforts to win back the trust” of customers. German Transport Minister Alexander Dobrindt said he was setting up a commission to determine whether the VW diesel vehicles were built and examined in a way that complied with German and European rules.

The company hasn’t revealed the results of internal investigations, although it has said that the software in question was installed in other vehicles with diesel engines, and asserted that in most cases, it “does not have any effect.” Before the scandal, Winterkorn, CEO since 2007, was hoping to have his stewardship of the company extended at a board meeting Friday. This story has been corrected to show that Volkswagen shares dropped 31 percent over two days, not 35 percent, and that the company’s market value fell by $26 billion, not $30 billion.

Earlier this month, Volkswagen said it planned to give Winterkorn a two-year contract extension which would keep him in charge through the end of 2018. House Energy and Commerce Committee Chairman Fred Upton, R-Mich., said Monday that the panel’s subcommittee on oversight and investigations will hold a hearing “in the coming weeks” on VW’s use of the defeat devices.

The federal government paid out as much as $51 million in green car subsidies for Volkswagen diesel vehicles based on falsified pollution test results, according to a Los Angeles Times analysis of the federal incentives.

Here you can write a commentary on the recording "The Latest: NY AG Opens Investigation Into Volkswagen Cars".

* Required fields
All the reviews are moderated.
Our partners
Follow us
Contact us
Our contacts

ICQ: 423360519

About this site