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VW emissions bill could rise - CEO

Wednesday, October 21, 2015 - 01:31

Volkswagen halts sale in Europe of new cars fitted with emissions-cheating software - and warns that the 6.5 billion euros set aside to cover the costs of the scandal may not be enough. Hayley Platt reports.

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The Volkswagen diesel emissions scandal is the biggest in the company's 78-year history. Now it's to stop selling new cars within the European Union that contain the software used to cheat the diesel emissions test. The group said only a limited number of diesel cars with Euro 5 engines will be affected. They'll be upgraded before going back on sale. The group says it may need more than the 6.5 billion euros it has already set aside to cover the costs. IG's Alastair McCaig said VW's potential bill could keep growing. (SOUNDBITE) (English) Market Analyst IG, ALASTAIR MCCAIG, SAYING: "I don't think there are many in the city that believe the six and a half billion euros is going to be anywhere near sufficient funding to cover all of the different costs associated with I guess the three major areas which is tackling the 11 million cars that have effectively been sold under false pretenses. The increased emissions that have happened on an annual basis for a number of years and quite frankly the harm that this will do to Volkswagen and their other branded products." 8.5 million vehicles in the European Union region are suspected to have been fitted with the banned software. VW, said it would recall them all. If matters weren't bad enough, Norwegian ship owner I.M. Skaugen is seeking $50 million in compensation from a marine division owned by VW. It relates to the alleged rigging of performance tests of ship engines produced over a decade ago.

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VW emissions bill could rise - CEO

Wednesday, October 21, 2015 - 01:31