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VW puts aside billions of euros to address emissions issue - and win back customer confidence

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Volkswagen says it has so far put aside €6.5 billion (£4.7bn) )to cover costs to address the emissions issue it says effects 11 million vehicles worldwide.

In a statement it says it is working at full speed to clarify irregularities concerning software used in diesel engines.

Winning back customers’ faith in its brands is Volkswagen’s top priority.

Volkswagen has been ordered to recall half a million cars in the US after the Environmental Protection Agency found a ‘defeat device’ that meant cars would emit less during tests than when being driven normally, in the Jetta, Beetle, Golf and Passat and Audi A3.

The statement in full:

Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines. 

New vehicles from the Volkswagen Group with EU 6 diesel engines currently available in the European Union comply with legal requirements and environmental standards.

The software in question does not affect handling, consumption or emissions.

This gives clarity to customers and dealers.

Further internal investigations conducted to date have established that the relevant engine management software is also installed in other Volkswagen Group vehicles with diesel engines.

For the majority of these engines the software does not have any effect.

Discrepancies relate to vehicles with Type EA 189 engines, involving some 11 million vehicles worldwide.

A noticeable deviation between bench test results and actual road use was established solely for this type of engine.

Volkswagen is working intensely to eliminate these deviations through technical measures.

The company is therefore in contact with the relevant authorities and the German Federal Motor Transport Authority (KBA – Kraftfahrtbundesamt).

To cover the necessary service measures and other efforts to win back the trust of our customers, Volkswagen plans to set aside a provision of some 6.5 billion EUR recognized in the profit and loss statement in the third quarter of the current fiscal year.

Due to the ongoing investigations the amounts estimated may be subject to revaluation.

Earnings targets for the group for 2015 will be adjusted accordingly.

Volkswagen does not tolerate any kind of violation of laws whatsoever. It is and remains the top priority of the Board of Management to win back lost trust and to avert damage to our customers. The Group will inform the public on the further progress of the investigations constantly and transparently.

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