European Parliament set to hold inquiry into VW emissions scandal 

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The European Parliament plans to set up a committee to investigate Volkswagen‘s (VOWG_p.DE) emissions scandal and whether regulatory oversight of the car industry was too lax.

Members of the European Parliament will vote on the issue around midday on Thursday, but lawmakers said that was a formality after leaders of the various political groups decided on Wednesday to establish the committee.

The inquiry could last for up to a year and will investigate alleged contraventions of European Union law and alleged “maladministration” in the application of the law, according to the proposal approved by the group leaders.

Some 45 members of the European Parliament will sit on the committee.

“For me, the diesel issue mainly has two dimensions. Firstly, it’s about private companies organizing the largest industrial fraud ever,” Claude Turmes, Green Member of the European Parliament, said.

“And secondly, it’s about public authorities in member states and on the EU level not intervening despite having relevant information.”

EU regulation of the car industry has been under scrutiny since Volkswagen admitted in September it had rigged U.S. tests for nitrogen oxide emissions in diesel vehicles and that up to 11 million vehicles worldwide – most of them in Europe – were fitted with software capable of cheating tests.

Liberal politicians also strongly backed the inquiry.

“We need to find out what has gone so badly wrong and why EU law has not been upheld,” Guy Verhofstadt, leader of the European Parliament’s liberals, said.

The main centre-right European People’s Party was less enthusiastic, but parliamentary sources said Thursday’s vote was still expected to back the plan.

“The creation of an inquiry committee is not our priority because it is not by creating new committees that we will solve the problems,” Francoise Grossetete, EPP vice chairwoman, said.

Nitrogen oxides reduce air quality and member states have been flouting EU limits on a range of pollutants associated with more than 400,000 premature deaths per year, according to European Commission data.

The Commission has begun 21 infringement proceedings against nations in breach of existing rules and has proposed more stringent legislation in the face of resistance from some governments.

At a meeting of environment ministers in Brussels on Wednesday, four nations – Austria, Denmark, Germany and Poland – objected to a compromise put forward by Luxembourg, holder of the EU presidency.

Following Wednesday’s uneasy compromise, pushed through by a qualified majority, the new Dutch presidency, which takes over from Luxembourg in January, together with the Commission and the European Parliament will try to get agreement on a legal text.

“This has been blocked for more than two years. If we lose time, we lose people,” Carole Dieschbourg, Luxembourg environment minister, said.

Source: REUTERS – European Parliament set to hold inquiry into VW emissions scandal

VW gets go-ahead to repair diesel cars affected by emissions scandal

Volkswagen recall will begin in 2016 with 2-litre cars, as German firm promises to compensate customers for any fall in residual value of their vehicle

Volkswagen has secured regulatory approval to repair diesel cars affected by the emissions scandal and will begin work in January.

The German Federal Motor Transport Authority (KBA) has given VW the green light to install software and a flow transformer device, part of the air intake system, into the 8.5m diesel engines in Europe that contain software designed to cheat emissions tests.

VW has previously admitted installing defeat devices in 11m vehicles worldwide.It faces the prospect of paying tens of billions of euros in fines and compensation to customers.

Hans Dieter Pötsch, the VW chairman, admitted there had been a “whole chain” of errors at the German carmaker and a mindset within the company that tolerated rule-breaking.

VW will begin the process of repairing vehicles early next year by sending letters to motorists. This letter will advise customers that their vehicles are scheduled to be repaired but to await further instructions. A second letter will then tell affected motorists to contact a local engineer in “good time” to fix their vehicle.

Vehicles with a 1.2-litre or 2-litre engine will be fixed with a software update that can be installed in less than 30 minutes. However, 1.6-litre cars will require a new part to be placed in the vehicle, which will take less than an hour.

The recall will begin with 2-litre cars in the first quarter of 2016, followed by 1.2-litre cars in the second quarter and 1.6-litre cars in the third quarter.

VW has said it will provide compensation for customers for any fall in the residual value of their car, but the German company is yet to announce its plans. Customers will be provided with a free hire-car while their vehicle is being repaired.

The European parliament plans to investigate the carmaker, and the failure of regulators to prevent the rigging of diesel emissions tests. MEPs will vote on Thursday whether to launch the investigation, regarded as a formality.

Claude Turmes, a Green MEP, said: “The diesel issue mainly has two dimensions. Firstly, it’s about private companies organising the largest industrial fraud ever, and secondly, it’s about public authorities in member states and on the EU level not intervening despite having relevant information.”

Source: THEGUARDIAN – VW gets go-ahead to repair diesel cars affected by emissions scandal

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