VW chief apologises for emission deception on trip to core US market
Volkswagen AG’s chief executive officer has apologised to American car buyers in his first public appearance in the US since being hired in the wake of the scandal over the firm’s rigging of emissions tests on its so-called clean diesel engines.
“We are totally committed to making things right,” Matthias Mueller said Sunday in a speech in Detroit before the North American International Auto Show.
“We know we deeply disappointed our customers, the responsible government bodies and the general public here in the US. I apologise for what went wrong at Volkswagen,” Mueller said.
Europe’s largest automaker is facing complex talks with the US Environmental Protection Agency about possible fixes for about 480,000 diesel cars with 2-litre engines. The regulator last Monday said the talks haven’t produced “an acceptable way forward”. The Department of Justice sued the same day, a case that could cost the Wolfsburg, Germany-based firm billions of dollars in fines.
VW set aside 6.7 billion euros (US$7.3 billion) for recall costs in the third quarter, but already acknowledged this won’t be enough. The relatively easy and cheap technical solution for some 8.5 million affected cars in Europe won’t work for cars in the US due to technical differences and stricter diesel emission rules.
Mueller will meet with EPA head Gina McCarthy Thursday in Washington to try find a way forward. His appearance in Detroit and the planned meetings in Washington are part of Mueller’s first trip to the US in his new role after the former head of VW’s Porsche sportscar brand in September replaced Martin Winterkorn, who was forced out when the manipulation scandal came to light.
Global sales of the namesake VW brand fell 4.8 per cent to 5.8 million vehicles in 2015, the first decline in 11 years, including a 7.9 per cent dip in December. VW brand deliveries dropped 9.1 per cent to 30,956 autos that month in the US, despite a record year of growth for other companies. Volkswagen’s emissions cheating emerged there in September.
Global deliveries for the Volkswagen group dropped below the 10 million-car milestone reached last year as the Chinese market slowed and the company’s cheating on diesel emissions deterred customers. Deliveries were also hit by tanking markets in Brazil and Russia.
Mueller reiterated the VW group will add 20 new electric and hybrid cars to its lineup by 2020. The manufacturer is presenting a concept for the hybrid version of its revamped Tiguan compact sport-utility vehicle at the Detroit show. Production of an updated and redesigned Tiguan started last week.
VW is investing about US$900 million on producing a new mid- size SUV at its U.S. factory in Chattanooga, Tennessee, to better meet tastes of American buyers. VW improved sales in Europe and China in recent years while lagging far behind global rivals in the U.S.
“Volkswagen must further deepen its understanding of the United States,” Mueller said.
