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VW Ireland MD invited to appear before transport committee

Matthias Mueller was appointed Volkswagon's CEO last Friday
Matthias Mueller was appointed Volkswagon's CEO last Friday

The managing director of Volkswagen Ireland has been invited to appear before the Oireachtas Transport Committee over the emissions scandal.

At a meeting of the committee today it was confirmed the process of inviting Lars Himmer is under way.

If Mr Himmer agrees, it is likely he would appear before the committee on 21 October. 

Fianna Fáil’s Timmy Dooley said it is a significant issue for consumers and for the environment.

He said it is important "that the committee has an opportunity to hear from Volkswagen Ireland about the potential implications for Irish motorists".

Mr Dooley said it may be the case that the EU test case needs to be overhauled.

He added that the emissions scandal could have tax implications for owners with diesel engines.

VW to examine findings from inquiry into emissions scandal

Senior Volkswagen officials were to examine findings from an internal investigation into its rigging of vehicle emission tests and prepare for an external inquiry, a source familiar with the matter told Reuters.

The executive committee of the German carmaker's supervisory board will gather this evening at its Wolfsburg headquarters to assess the initial results of the internal inquiry into the biggest business-related scandal of its 78-year history, said the source.

A representative of US law firm Jones Day, which has been appointed to lead the external investigation, will attend part of the meeting, the source added.

Earlier, it was reported that German prosecutors launched a preliminary investigation into the company's subsidiary Audi, also in relation to the rigging of vehicle emission tests. 

Wolfram Herrle, chief prosecutor in Audi's hometown of Ingolstadt in southern Germany, was quoted as telling the Funke Media group that a preliminary investigation had been launched to see whether to initiate formal proceedings against the company.

He said: ""We are currently reviewing all the facts in order to decide whether an investigation should be initiated."

Europe's largest carmaker has admitted cheating diesel emissions tests in the United States.

Germany's transport minister says it also manipulated tests in Europe, where Volkswagen sells about 40% of its vehicles.

It is under huge pressure to get to grips with a crisis that has wiped more than a third off its market value, sent shockwaves through the global auto industry and could damage Germany's economy.

New Chief Executive Matthias Mueller, who took over from Martin Winterkorn last Friday, has promised to find those responsible and to create a new business culture.

"Those people who allowed this to happen, or who made the decision to install this software - they acted criminally. They must take personal responsibility," supervisory board member Olaf Lies told the BBC.

Mr Winterkorn, CEO for almost nine years, is being investigated by German prosecutors over allegations of fraud.

The company suspended three top engineers on Monday and two sources familiar with the matter said today that communications chief Stephan Gruehsem was expected to step down.

Investors view an external investigation as particularly important, given the close links of Mr Mueller and chairman-designate Hans Dieter Poetsch to the Piech-Porsche clan that controls Volkswagen.

Shareholder advisory firm Hermes EOS said yesterday it had "real doubts" about Volkswagen's decision to appoint company insiders to top jobs to tackle the crisis.

German newspaper Handelsblatt reported today that some investors were calling for Mr Poetsch to stand aside.

However,a spokesman for Porsche SE, the Piech-Porsche clan's holding company, said it continued to back Mr Poetsch as chairman.

Volkswagen said yesterday it would refit up to 11 million vehicles installed with the "cheat" software in one of the biggest such recalls by a single automaker.

It has promised to submit details to regulators next month.

Johannes Kleis, communications chief for the European Consumer Organisation, told Reuters it was pressing Volkswagen to give customers information as quickly as possible about any implications for fuel consumption and emissions.

"Time is of the essence," he said.

But analysts say the refit may not be straightforward, and Volkswagen's Czech division Skoda has informed the government in Prague that it will need until the end of October to find a technical solution.

Around 1.2 million Skoda vehicles are affected.

Manipulating emissions results allowed Volkswagen to keep down engine costs in a "clean diesel" strategy that was popular in Europe and at the heart of a drive to improve US results.

The source familiar with the matter told Reuters an engineer questioned in the company's internal probe had warned of illegal practices in emissions measurement as far back as 2011, but that no action was taken.

On top of its own inquiries, Volkswagen faces investigations by regulators and prosecutors across the world, plus potential lawsuits from customers, investors and environmentalists.

Industry publication Green Car Journal also said yesterday it was rescinding "Green Car of the Year" awards given to Volkswagen's 2009 VW Jetta TDI and 2010 Audi A3 TDI models.

However, Skoda said it had not seen any impact on sales or orders since the crisis erupted, and analysts said a halving in sales tax on small cars in China could provide a boost to Volkswagen.