Horn will announce that VW is withdrawing applications seeking government emissions certifications for its 2016 model Jettas, Golfs, Passats and Beetles with diesel engines.
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Admitting that the company had “broken the trust of our customers, dealerships, and employees, as well as the public and regulators”, Horn vowed to hold those responsible accountable. He is expected to face blistering questions about when top executives at the company first learned of the scheme.
VW needs every cent as in the United States alone it faces up to $18 billion in fines from the Environmental Protection Agency, plus potential payouts from class action lawsuits and penalties from other regulators.
Last month, it was revealed that millions of the German company’s diesel vehicles were fitted with technology that allowed them to cheat in emissions tests.
One source close to the matter said the supervisory board of the company’s flagship Audi brand would also meet this afternoon, and has hired accountants to help investigate the scandal as well.
Under the cosh car giant Volkswagen (XETRA:VOW), is set to begin the task of recalling 11mln diesel vehicles in the new year, it was reported. That’s a huge loss for VW dealers, who were hoping to put the new models on sale soon.
Christopher Grundler, director of the EPA’s office of transportation and air quality, will testify Thursday along with Philip Brooks, director of an EPA office charged with enforcing air standards.
In a prepared statement to the committee, Horn, president and CEO of Volkswagen U.S., said he was told in the spring of 2014 that there was a “possible emissions non-compliance” situation that could be remedied.
VW has admitted that 11 million of its diesel cars worldwide have software that turns pollution controls on when the vehicles are being tested on a treadmill-like device and shuts them off when the automobiles are on the road.
The scandal around the so-called defeat devices has wiped more than 40% off Volkswagen’s market capitalisation, but the direct and indirect costs are still incalculable as the company risks fines in several countries and possible damages from customers’ lawsuits. But EPA did not apply that technology on its own tests of diesel passenger cars and instead focused on trucks, thus missing its best chance to foil the German carmakers deception as early as 2007. “We ask for your understanding as we complete this work”, the Volkswagen executive said in the written testimony. It then turned on pollution controls that reduced the output of nitrogen oxides that contribute to smog and other pollution, the EPA has said.
Most of the vehicles affected would only need a minor adjustment in their engines but some would require major intervention, adding that these would be “of course carried out free of charge”, said Mueller.
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A Volkswagen representative said the Touareg diesel, which uses a 3.0-liter engine, was not affected by the EPA discussions and would be part of the 2016 line-up.
