VW does not expect extra costs to fix all diesels image

Volkswagen has said that the amount put aside for fixing all the cars capable of cheating the emissions test is enough, even with the extra affected diesels in the US.

Many analysts have predicted that the amount the Volkswagen Group has assigned for fixing all the diesel engines fitted with the cheating device capable of bypassing the emissions tests is not enough to cover the global costs. However, the German automaker’s CEO, Matthias Mueller, wanted to further clarify the matter, by saying that the initial financial evaluation for developing and installing the fix should be accurate. “We have prepared 6.7 billion euros (7.28 billion dollars) for the repair process of all the cars globally. We suppose that that should be enough,” Mueller said in an interview with Reuters at the Detroit Auto Show. If this is correct, the amount should also cover the solution found by VW for around 430,000 affected cars in the United States, a technical fix that implies a new catalytic converter to be fitted, a new system partly made from new materials.

Muller will propose it to the US Environmental Protection Agency during a meeting due today with EPA administrator Gina McCarthy in Washington. The talks between the two sides will also include a time schedule and the idea of either refund the purchase price of the rest of the vehicles or offer a new car at a significant discount. Christopher Grundler, director of the EPA’s Office of Transportation and Air Quality, said he didn’t know if a VW proposed catalytic converter would fix the US diesels. “Given the circumstances and the past history, we’re not going to approve anything until it’s thoroughly tested and we’re convinced that it addressed the non-compliance and it’s good for owners,” Grundler said.

Via Reuters