VW CEO expects US deal on diesel fix as talks progress
Volkswagen chief Matthias Müller signalled at the Geneva show that a US agreement on diesel fixes, buybacks and penalties could be near, with talks ongoing this week.
Volkswagen’s CEO Matthias Müller said at the Geneva Motor Show that the company is confident it will soon reach an agreement with US regulators on a technical fix for nearly 600,000 diesel vehicles caught up in the emissions scandal. Müller confirmed that discussions with the US Environmental Protection Agency, the Department of Justice and the California Air Resources Board are ongoing and described the talks as constructive.
No technical solution for the affected US cars had been approved by regulators as of early March 2016, but Müller stated that negotiations were making progress. He said further meetings with authorities were scheduled for that week, indicating that a deal could be close. Volkswagen’s US legal team also told a federal judge in San Francisco that progress was being made towards an agreement with the relevant agencies.
Scope of the US diesel issue
The emissions scandal has left Volkswagen facing fixes or buybacks for almost 600,000 cars in the US alone. Globally, the company has admitted to fitting 11 million vehicles with software designed to cheat emissions tests. In the US, the regulatory environment and technical requirements have made a solution slower to emerge than in Europe, where some fixes have already been approved.
Customer trust and future outlook
Müller said Volkswagen had launched customer-relations programmes in an effort to restore trust after the diesel emissions admission. He expressed confidence that the company would recover its reputation, but acknowledged that the process would take time. VW is also preparing for possible fines and further regulatory action in the US, in addition to the technical fixes and potential vehicle buybacks under discussion.
The outcome of these negotiations will shape Volkswagen’s future in the US market, where the brand faces both financial penalties and the challenge of regaining customer confidence after the widespread diesel cheating revelations.
