Volkswagen is to recall 8.5m diesel cars across the European Union in the wake of the emissions scandal.
The full extent of the work required by the manufacturer to deal with the defeat devices in its diesel vehicles became apparent on Thursday after German authorities rejected its proposals for a voluntary scheme.
Germany’s federal motor transport authority ordered a compulsory recall of all the affected 2.4m Volkswagen cars in the country, triggering the move by VW across all 28 EU member states.
It means that all 1.2m vehicles affected by the scandal in the UK will be formally recalled.
Volkswagen said it welcomed the German decision, which would “give customers clarity with regard to the continued unrestricted use of the vehicles”.
However, VW had proposed a voluntary recall of the cars, which would have meant that motorists only took their car in for repairs if they wanted to remove the defeat device. VW has told motorists their cars remain legal to drive on the basis that they passed emissions tests, even if this was only due to the defeat device.
VW has admitted that 11m diesel cars worldwide have been fitted with a defeat device that manipulated emissions tests. The company has put aside €6.5bn (£4.8bn) to meet the costs of recalling the cars but also faces the threat of fines and legal action from shareholders and customers.
US regulators say they have more questions for VW after the company’s recent disclosure of additional suspect engineering of 2016 diesel models that could help exhaust systems run cleaner during official tests.
The carmaker has said that a recall of the affected vehicles should begin early in 2016 but may not be completed by the end of the year. Some of the vehicles can be repaired through software changes, but others will need new parts, such as fuel injectors, to be installed.
The German authorities need to approve VW’s recall plan before the company can begin repairing vehicles around the world.
Alexander Dobrindt, the German transport minister, confirmed there would be a compulsory recall. He said: “VW is ordered to remove the software from all vehicles and to take appropriate measures to ensure that the emissions rules are fulfilled.”
Dobrinbt claimed that cooperation between VW and the authorities had been “extraordinarily good”.
However, he also warned that the hardware changes required to fix some of the cars may not be ready until September 2016.
Law firms representing British consumers stepped up the pressure on VW after the UK boss of Volkswagen, Paul Willis, again appeared in front of MPs promising to “do the right thing”.
Leigh Day, which said it was now representing more than 4,000 potential plaintiffs, said Willis’s reassurances “do not begin to address the many concerns that our clients have in relation to their vehicles”.
Slater and Gordon, another firm which said it had been approached by more than 3,000 car owners, has written again to VW warning that the carmaker’s response to owners’ concerns was “woefully inadequate”.
Italian authorities have raided the country’s Volkswagen HQ as part of a local investigation into the emissions-rigging scandal. Police in Verona searched the offices of Volkswagen Italia and confirmed that officials were under investigation.
The new chief executive of Volkswagen has remained upbeat, telling managers at Leipzig in a speech that the manufacturer can bounce back from the scandal. Matthias Müller said VW would need to devolve more power to its brands and regional operations, declaring: “We have a good chance of shining again in two to three years.”
Credit: The Guardian (UK)
