What's the news?
And just like that, things started to look up a little for Volkswagen.
While the investigation, litigation and prosecutions surrounding the 'defeat device' software used to partially circumvent diesel emissions tests in the United States continues, Volkswagen had been facing a second, potentially even more disastrous issue in Europe. As part of its investigation into the emissions scandal, the company had uncovered irregularities in the CO2 emissions and fuel consumption figures for several models. With the number of cars involved topping 800,000, Volkswagen was potentially going to find itself liable for fines, back-tax payments and possible lawsuits regarding these cars. The problem was considered much more serious than the diesel cheat device issue, as it involved the CO2 figures on which almost all European governments base their car taxation systems.
However, news has come today from Volkswagen that the problem is not half so serious as had been thought. In fact, the total number of Volkswagen vehicles involved now stands at around 36,000 and the figures are out, according to Volkswagen, by only tiny amounts - as little as 0.1 or 0.2 litres per 100km on the NEDC test, and by a few grammes per kilometre of CO2. Volkswagen is also claiming that "the suspicion that the fuel consumption figures of current production vehicles had been unlawfully changed was not confirmed."
The Volkswagen-badged cars affected are the Polo 1.0 TSI BlueMotion, the Scirocco 2.0 TDI, the Jetta 1.2 TSI and 2.0 TDI, the Golf 2.0 TDI and Golf Convertible 2.0 TDI, and the 2.0 TSI, 2.0 TDI and 1.4 TSI versions of the Passat Alltrack. Audi, SEAT and Skoda are yet to announce which specific models of theirs are affected, but the figures are expected to be similarly low.
What we don't know quite yet is whether any of these models will have to revise their Irish tax bands. While 'a few grammes per kilometre of CO2' as Volkswagen puts it may be relatively insignificant, there will almost certainly be cases where a model will go up a band on the basis of one or two g/km. In those instances, Volkswagen will still be liable to pay any lost tax revenue to the Government, and will likely have to compensate owners in some way too.
However, it still represents good news for the beleaguered German car giant. The numbers are now looking far, far smaller than they were and while Volkswagen is confirming nothing for now as it awaits the final clearance from German authorities, it has hinted that the €2 billion set aside to deal with this specific problem can now possibly be re-directed elsewhere. It also seems likely that criminal investigations into the CO2 emissions figures will be dropped.
Volkswagen still has issues with which to deal though. It is still wrangling with the U.S. authorities over fixes for the diesel models in the States, which were caught cheating, and still faces potential prosecutions and lawsuits for that. It also has not yet started the process of recalling European diesel models to have their software, and in some cases hardware, altered to ensure that they are fully compliant with legislation. That process should start in January, and in another piece of good news for Volkswagen, the European fix is likely to be less expensive and time-consuming than the U.S. one.