💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

VW brand chief says no evidence of more cheating

Published 11/13/2015, 01:00 PM
© Reuters. Volkswagen cars are parked outside a VW dealership in London
VOWG
-
VOWG_p
-

By Andreas Cremer

BERLIN (Reuters) - Volkswagen's (DE:VOWG_p) top brand executive said he saw no evidence of further misconduct at the carmaker beyond diesel-emission and carbon-dioxide manipulations, as it reported a drop in sales for the first full month since the scandal broke.

In a joint interview with VW works council chief Bernd Osterloh published by German news agency DPA on Friday, Herbert Diess also said he saw no threat of job cuts for permanent staff as a result of the scandal.

VW is grappling with the biggest business crisis in its 78 year history after admitting in September it cheated U.S. emissions tests on diesel vehicles and adding earlier this month that it also understated fuel usage in some cars.

U.S. law firm Jones Day has been running an independent inquiry at VW into the emissions test cheating since September, and VW on Thursday pledged to speed up a program to encourage staff to cooperate in the investigations.

Osterloh said he did not know whether diesel emission manipulations committed by the company involved 10, 50 or even 100 people. "No one can tell that today," he said.

"But even if I take 100 out of (a global workforce of) 600,000, it remains a limited group," he added.

VW's top management and labor representatives are in talks to balance spending cuts and future investments as they brace for a bill expected to run into billions or euros in fines, lawsuits and vehicle refit costs.

Sources at VW have said Diess is considering a reduction in temporary staff at its namesake division, the carmaker's biggest.

Osterloh also said bonus payments to workers would not be at last year's level.

The carmaker's sales in October showed some impact from the scandal, with VW brand deliveries down 5.3 percent year-on-year after a 4 percent drop in September.

The fall partly reflected temporary sales bans of diesel cars in Western Europe, VW said.

Group sales, also including brands such as Czech division Skoda and luxury nameplate Audi, fell 3.5 percent to 831,300 cars, the seventh straight monthly decline, VW said.

"The entire company is working to restore the trust of our customers in the brand and our products," VW brand sales chief Juergen Stackmann said.

Diess said in the DPA interview the carmaker's orders were growing in Germany but falling in southern Europe, Britain and some overseas markets.

© Reuters. Volkswagen cars are parked outside a VW dealership in London

He said compensation measures for VW owners would be tailored individually to market needs as VW aims to rebuild trust with customers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.