Volkswagen scandal update: “We want clarity fast, but it is equally important to have the complete picture”, Commission’s spokesperson underscores from Brussels

Volkswagen logo_
More than two months have passed since the Volkswagen emissions scandal broke out and the company is still under thorough investigation revealing that many more vehicles are affected by the cheating software and the firm’s fraudulent techniques.

Last Monday, the Volkswagen (VW) chief executive officer Matthias Müller stated in Wolfsburg, Germany that the majority of VW’s problematic vehicles in Europe are going to be fixed. Specifically, his exact words went like this:  “For about 90% of the group’s vehicles in Europe the solutions are confirmed. The cost for the retrofitting is technically, physically and financially manageable.”

However, even if his sayings appeared reassuring, it will be never enough to regain the company’s lost trust which has effectively slowed down its sales. Further, no specific details are yet announced regarding the way the firm plans to fix the 11 million vehicles in which the cheating software had been installed.

VW and the cheating scandal

VW and its history have been tainted by the recent scandal. This colossal company could be affecting the EU and world economy since it employs about 600.000 people, has annual revenue of $269 billion and manufactures 1 out of 9 vehicles in the world. Thus, the above makes this scandal too important not only for the company but also for the world’s economy.

The CEO of VW made it crystal clear during the company’s Assembly on 23 November when mentioning to the managers that “investigations are running at full speed”. Matthias Muller also underlined that it is a very good evolution the fact that reversing the situation would be totally achievable. Furthermore, Mr Muller said that “VW’s internal enquiry into the scandal was very complex and would take many months to complete, though he promised a report on its progress in mid-December”.

But as the investigation is full development, the US regulators start now finding more and more cases where the German car manufacturer is again not playing by the book.

The investigation further expands

The US Environmental Protection Agency (EPA) together with the California Air Resources Board are broadening the ongoing investigation by looking into oldest versions of VW, Audi and Porsche vehicles with 3.0 liter diesel engines that were manufactured  from 2009 till now. VW had claimed not to have cheated on the 3.0-liter Audi-engineered motors but guess what; it was discovered last Friday by U.S regulators that a specific part of the vehicles’ software is also illegal.

What is more, the European Commission‘s view on this scandal is that member states who approved Volkswagen vehicles have to probe their own investigations. More specifically, Lucia Caudet, Commission’s spokesperson, had stated earlier this month: “We want clarity fast, but it is equally important to have the complete picture”.

VW’s economic performance

Volkswagen has realized a 5.3% fall in its car sales last October. Deliveries also dropped by 1.3% in Western Europe in comparison to last year. Germany, Italy and Spain were the countries to experience the least demand for the German cars.

The barrel of the VW scandal does not seem to have a bottom and the company is deeply feeling that due to a 34% loss in market value and the numbers that keep on dropping.

The company is now trying to bring back unsatisfied customers by providing incentives such as zero-down payment and zero-percent financing deals in the United States whereas in Germany VW provided an average 11.2% reduction off the car prices last October.

Nevertheless, while sales are dropping in the US and Europe, global sales are thriving in China by 1.8%. Is China not affected by this scandal or is it too soon to make conclusions? Time will tell.

All in all, the company’s performance is expected to be strongly influenced by the final report of the US regulators’ investigation which is bound to shed light to this scandal. However, the point that remains to be answered by the German giant manufacturer is whether they will change attitude and philosophy after the disclosure of the cheating software or they will continue business as usual; as if nothing had happened.

Follow Chris on Twitter @CAnyfantis

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

COVID-19: Commission steps up research funding and selects 17 projects in vaccine development, treatment and diagnostics

Amid troop build-up in Rohingya’s home state, UN appeals to Myanmar for peaceful solution

The way to entrepreneurship in the developing world

A week to decide if the EU is to have a Banking Union

UN calls for funds to ease ‘deteriorating’ humanitarian situation in Gaza and West Bank

EU budget deal struck with Parliament negotiators

EU takes again positive action on migration crisis while Turkey asks for dear favors in exchange for cooperation

Alternative proteins will transform food, mitigate climate change and drive profits. Here’s how

Amazon fires: Health Effects, Near and Far

On flight to sustainable development, ‘leave no country behind’, urges aviation agency

Croatian Presidency outlines priorities to EP committees

Delhi Declaration: Countries agree to make ‘land degradation neutrality’ by 2030, a national target for action

Welfare of transported animals: MEPs urge EU states to do a better job

Electronic cigarette – is it really a safer alternative to smoking?

Entrepreneurial leadership: what does it take to become a leader?

Over 40 million people still victims of slavery

Hundreds of thousands of lives still lost each year to small arms, UN conference hears

UN News Daily #UNGA Guide: Mandela Peace Summit, Global Goals, Youth and Yemen

Amid ‘unprecedented combination’ of epidemics, UN and partners begin cholera vaccination campaign in DR Congo

As north-west Syria violence reaches ‘horrifying’ new level, UN relief chief says ceasefire is only option

Defence: European Commission paves the way for first joint industrial projects under EU budget

EU signs with Canada historic trade agreement, others to follow

Merry Christmas from Erdogan, Putin, Mogherini and the Polish firefighter

Quality coffee can boost local economies and benefit farmers – here’s how

3 ways India can tackle its human-waste problem

Mergers: Commission opens in-depth investigation into proposed acquisition of Transat by Air Canada

Revolutionary technologies will drive African prosperity – this is why

Sydney is choking on record levels of smog – and the bushfire season is just getting started

State aid: Commission approves €2 billion Italian guarantee scheme to support trade credit insurance market in the context of the coronavirus outbreak

Further reforms in Sweden can drive growth, competitiveness and social cohesion

Marco Polo’s Dream

Ambitions are affordable for Asia and the Pacific

Challenges behind a technological way at health

EU and US close to an agreement on data sharing amid European citizens’ concerns

Sudan: UN rights chief alarmed over ‘excessive force’, alleged use of live fire against protestors

UNICEF urges governments to repatriate thousands of foreign children stranded in northeast Syria

MWC 2016 Live: Industrial world prepares to reap digital benefits

From a refugee camp to Davos: one Co-Chair’s story

‘Whole spectrum of Afghan society’ must get behind peace talks, UN envoy tells Security Council

UN health agency developing COVID-19 virus treatment master plan

Commission welcomes political agreement on the ESF+

Ebola Outbreak in Democratic Republic Congo is ‘largely contained’: WHO

Why and how Germany had it again its own way in Cyprus

The G7 fails to agree on growth but protects the big banks

State aid: Commission refers United Kingdom to European Court for failure to fully recover illegal tax exemption aid of up to around €100 million in Gibraltar

Pandemic versus fear

The completion of the European Banking Union attracts billions of new capital for Eurozone banks

Towards a seamless internal EU market for industrial goods

‘Compelling case’ for urgency around global disarmament, UN-led forum told

‘Negative developments’ undermining two-State solution in Middle East

Raw materials use to double by 2060 with severe environmental consequences

Closing the trust gap: how responsible data use can accelerate a sustainable society

Remittances could fall by $100 billion because of COVID-19 – here’s why that matters

Libya: EU efforts should focus on protecting migrants, MEPs say

European Agenda on Migration: Still fragile situation gives no cause for complacency

MEPs urge EU states to ensure better care of transported animals

One year on: EU-Canada trade agreement delivers positive results

Pakistan: UN Security Council condemns ‘heinous and cowardly’ terrorist attacks

CO2 emissions on the rise for first time in four years, UN agency warns

EU and China in search of a win-win agreement through strategic cooperation ahead of the EU-China summit

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s