Lightening has struck twice in the Volkswagen emissions saga with the giant car maker now admitting to a further cover-up, this time with CO2 emissions and fuel consumption figures for petrol models.
This latest admission is arguably more serious for Irish motorist than the NOx diesel deception as our tax system uses CO2 emissions to calculate both VRT and road tax charges. The German carmaker has revealed that carbon-dioxide emissions had been understated - leading it to underestimate the fuel consumption - and this could add €2 billion to its expected costs of the scandal.
The latest issue came to light over the weekend when Volkswagen issued a statement of admission and listed the cars - all 2016 models – in the Audi, SEAT, Skoda and Volkswagen ranges that are believed to have incorrect CO2 and fuel consumption ratings. It's thought that around 430,000 vehicles are involved worldwide, all using TSI or TFSI petrol or TDI diesel engines with 1.0, 1.2, 1.4, 1.8 and 2.0-litre capacities. These cars appear to be in addition to the 800,000 previous generation models that Volkswagen previously announced had suspect economy and emissions ratings.
Already, there is speculation that approximately 9,000 vehicles across the group’s brands may be affected in Ireland.
It is also being reported that the Volkswagen group’s chief executive Matthias Müller has already written to Minister for Finance, Michael Noonan stating that the company would meet the cost of any increased tax liability on owners. Already €3 billion has been wiped off Volkswagen’s market value since the announcement was made.
Today the Irish Times is reporting that a Co. Mayo motorist has filed a legal action against Volkswagen in what is believed to be one of the first Irish cases over the firm’s emissions scandal.
The legal proceedings have been filed before Castlebar District Court by the owner of a 2013 Skoda Superb, who is bringing the case against the local dealer, Monaghan and Sons (Castlebar) Ltd, Volkswagen Group Ireland, and the parent firm Volkswagen AG.
Social worker, Alison O’Toole, represented by O’Dwyer Solicitors, is seeking compensation to cover the potential liability to the Revenue Commissioners for underpayment of Vehicle Registration Tax (VRT), liabilities to the local county council in respect of unpaid motor tax, damages for future tax charges and compensation for the impact that a higher tax band will have on the car’s resale value. She is also seeking damages for misrepresentation by all three respondents in the case.
The court case will be watched closely by customers and franchise dealers with interest and is likely to heighted anxiety amongst Irish owners that the residual valuations for used VW, Audi, SEAT and Skoda models may fall even further in the wake of Volkswagen’s latest declaration.
Furthermore the Irish Competition and Consumer Protection Commission has launched a formal investigation in the emissions scandal. Saying that it is deeply concerned by the understatement of carbon dioxide emissions in cars distributed in Ireland, the commission says that consumers may have been influenced by information - which is now believed to have been inaccurate - when looking at buying any of the cars affected. The commission says the investigation will establish whether there has been a breach of Irish consumer protection law.
Commission Chair, Isolde Goggin said: “We are committed to obtaining the best outcome for Irish consumers and ensuring that they do not suffer as a consequence of being provided with misleading information".
As yet Volkswagen Group Ireland has not issued a statement in relation to their customers here in Ireland.