financetom
Economy
financetom
/
Economy
/
VW US CEO grilled at Capitol Hill over emission scandal
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
VW US CEO grilled at Capitol Hill over emission scandal
Oct 8, 2015 12:52 PM

Michael Horn, president and CEO of Volkswagen Group of America, in a hearing on Capitol Hill Thursday, apologized and said that the company is "determined to make things right."

Horn's remarks were made public a day before he was due to testify before the House Committee on Energy and Commerce. A Republican lawmaker called Volkswagen's emissions-cheating a "fundamental violation of public trust."

"We have to streamline our processes and this company has to bloody learn and use this opportunity in order to get their act together," he said.

He said that he had no knowledge of the faulty software prior to his meeting with the US Environmental Protection Agency and the California Air Resources Board on Sept. 3, 2015.

"To the best of my knowledge today, this was not a corporate decision," he said. "This was a couple of software engineers who put this in for whatever reasons and I would also like to find out."

Horn, a German who has worked at VW for 25 years, said he did not think something like that would be possible at his company. "These events are deeply troubling," he said.

Representatives were most concerned about the nearly half a million affected cars already on the road in the US Horn explained that for about 430,000 of those vehicles, a software-only fix would be technically unworkable; a hardware fix would also be needed.

Horn apologized for not having specific dates on when technical remedies could be expected as investigations are still ongoing, but said that new software could be available early next year. He explained that the full remedy could take several years to complete.

Dealers, whose business is approximately 25 percent diesel cars, will receive some financial support and incentives from VW, he said.

Horn outlined a series of actions the company was planning to take to remedy the situation. Among them: conducting global investigations, developing remedies and communicating openly.

He said the company's losses will depend of the amount of fines, recall fixes and customer compensation and "this is a whole lot of money, I'm quite sure."

He said the company would examine compliance and standards to "make certain that something like this cannot happen again." The company has set up a service line and website for the public to access. Horn also said that he had sent a letter to every affected customer.

"We will fully cooperate with all responsible authorities. We will find remedies for our customers, and we will work to ensure that this will never happen again," he said.

In mid-September, the EPA made allegations that the German automaker had been cheating on American air pollution tests. Volkswagen installed sophisticated software known as "defeat devices" in the electronic control module of diesel vehicles issued between 2009 and 2015.

The company later admitted to the faulty software and subsequently issued several apologies. About 11 million cars worldwide are thought to be affected.

Share Market Live

NSE

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US labor market shows resilience before trade tensions escalation
US labor market shows resilience before trade tensions escalation
Apr 4, 2025
WASHINGTON (Reuters) -The U.S. economy added far more jobs than expected in March, but President Donald Trump's sweeping import tariffs could test the labor market's resilience in the months ahead amid sagging business confidence and a stock market selloff. The Labor Department's closely watched employment report on Friday suggested steady momentum in the economy before the Trump administration's reciprocal duties...
Fed's Powell says larger-than-expected tariffs mean higher inflation, slower growth
Fed's Powell says larger-than-expected tariffs mean higher inflation, slower growth
Apr 4, 2025
WASHINGTON (Reuters) -President Donald Trump's new tariffs are larger than expected and the economic fallout including higher inflation and slower growth likely will be as well, Federal Reserve Chair Jerome Powell said on Friday in remarks that pointed to the potentially difficult set of decisions ahead for the central bank. We face a highly uncertain outlook with elevated risks of...
Fed Chair Powell Says Tariffs Likely to Have Larger Effect on Economy Than Expected
Fed Chair Powell Says Tariffs Likely to Have Larger Effect on Economy Than Expected
Apr 4, 2025
11:48 AM EDT, 04/04/2025 (MT Newswires) -- Federal Reserve Chair Jerome Powell said Friday that the effects of the Trump Administration's tariffs plans are likely to be larger than expected, while significant uncertainty remains. Powell was speaking at the Society for Advancing Business Editing and Writing Annual Conference. While uncertainty remains elevated, it is now becoming clear that the tariff...
Trump says 'perfect time' for Fed to cut interest rates
Trump says 'perfect time' for Fed to cut interest rates
Apr 4, 2025
WASHINGTON (Reuters) -U.S. President Donald Trump on Friday called on Federal Reserve Chairman Jerome Powell to cut interest rates, saying it was the perfect time to do so. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!, Trump said on Truth Social. ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved