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US states say Volkswagen stonewalling emissions probe
by Staff Writers
New York (AFP) Jan 8, 2016


Volvo gears up to play with big boys
Stockholm (AFP) Jan 8, 2016 - Swedish carmaker Volvo, owned by the Chinese Geely group, said on Friday it had turned the corner towards becoming a major international player as it posted record unit sales.

Volvo said it had sold over half a million cars in 2015, 503,127 exactly, its highest annual sales figure ever, representing a rise of eight percent over the previous year.

The sales data mark the end of the first stage of Volvo's recovery, begun after it emerged from a loss-making period in 2013.

"Volvo is about to enter the second phase of its global transformation. Once completed, Volvo will have ceased being a minor automotive player and taken its position as a truly global premium car company," company chief Haakan Samuelsson said in a statement.

"More records will tumble in coming years," he said.

Volvo has made no secret of its ambition to compete head-on with leading global high-end brands Audi, BMW, Mercedes-Benz and Jaguar.

Both Audi and Mercedes-Benz maker Daimler reported Friday record sales of over 1.8 million vehicles last year.

VW says no plans to buy back cars in Germany
Frankfurt (AFP) Jan 8, 2016 - Embattled German auto giant Volkswagen on Friday rejected calls by consumer groups to buy back cars in Germany that were affected by the massive pollution-cheating scandal, as it reportedly plans to do in the United States.

VW said there was "no basis" for such repurchases in Germany, as the modalities to re-fit the affected vehicles had already been agreed.

According to a report in the daily Sueddeutsche Zeitung earlier this week, VW expects to have to buy back around 115,000 diesel vehicles in the US that have been equipped with software to skew the affects of emission tests.

The head of the German consumer associations' federation, Klaus Mueller, said that a buy-back option would offer a "pragmatic and quick solution" for car owners in Germany, as well.

In Europe, VW plans to start recalling this month some 8.5 million affected vehicles in the region for a re-fit or adjustment.

But the clean air regulations in the United States are much stricter and such a solution is not acceptable there.

According to the Sueddeutsche, VW expects to have to buy back around one fifth of the affected cars in the US, which totalled around 580,000.

It said the buy-back could take the form of either a cash payment or the owners would be offered a brand new vehicle in exchange at a large discount.

The US authorities would reach a decision on this in January, the report added.

Earlier this week, the US government announced it is taking VW to court over the affair, dubbed "diesel-gate", which has hit the company's sales and could cost it countless billions of euros in fines and lawsuits.

Volkswagen has been uncooperative with US states probing its emissions-cheating technology, citing German privacy law in refusing to share documents, two prosecutors said Friday.

The German auto giant has fallen far short of its public pledges of cooperation, said sharply worded statements from the attorneys general of New York and Connecticut, who are leading a VW probe by more than 40 US states in parallel with an ongoing US federal investigation.

"Volkswagen's cooperation with the states' investigation has been spotty -- and frankly, more of the kind one expects from a company in denial than one seeking to leave behind a culture of admitted deception," said New York Attorney General Eric Schneiderman.

"It has been slow to produce documents from its US files, it has sought to delay responses until it completes its 'independent investigation' several months from now, and it has failed to pursue every avenue to overcome the obstacles it says that German privacy law presents to turning over emails from its executives' files in Germany. Our patience with Volkswagen is wearing thin."

Connecticut Attorney General George Jepsen, one of six state officials leading the probe, said the states will "seek to use any means available to us" to hold Volkswagen accountable.

"I find it frustrating that, despite public statements professing cooperation and an expressed desire to resolve the various investigations that it faces following its calculated deception, Volkswagen is, in fact, resisting cooperation by citing German law," Jepsen said.

The statements come on the heels of a lawsuit filed Monday by the US Department of Justice that seeks more than $20 billion in damages and said its probe was "impeded and obstructed by material omissions and misleading information provided by VW."

Volkswagen has repeatedly apologized for the scandal in which it admitted installing emissions-cheating technology on more than 11 million diesel engines worldwide, in vehicles of the model years 2009 through 2015.

In response to a request for comment Friday, a Volkswagen spokesman said the company has been responsive to US officials.

"We cooperate closely with the US investigation authorities," he said. "We cannot comment on a pending investigation."

Scandal-hit VW posts first full-year sales drop since 2002
Berlin (AFP) Jan 8, 2016 - Embattled German auto giant Volkswagen Friday posted its first drop in sales in over a decade, as it struggled to recover from a massive pollution cheating scandal.

Sales of vehicles bearing the Volkswagen badge fell 5 percent to 5.82 million, the company said, marking the first such decline in 11 years.

Overall VW group sales, which also include brands like Audi, Porsche and Skoda, reached 9.93 million, 2 percent less than a year ago and the first fall since 2002.

"Almost 10 million vehicles sold -- that's an excellent result given a difficult situation in certain regions and for diesel in the last quarter," said chief executive Matthias Mueller.

He acknowledged that challenges await in 2016, and said the company needed to be "more efficient for a successful future."

Volkswagen sank into its biggest crisis over its stunning revelations in September that it had fitted 11 million of its vehicles with devices designed to cheat pollution tests.

Earlier this week, the US government said it was sueing VW for $20 billion (18 billion euros) in civil penalties.

Mueller is travelling to the United States where he will attend a media reception in Detroit on Sunday.

He has vowed to press on with the company's diesel marketing offensive in the US despite the government lawsuit.

On Friday, VW shares closed 0.09 percent higher at 115.10 euros, defying an overall weak market, with the DAX closing 1.31 percent down.


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VW chief hopes to shift gears in Detroit
Washington (AFP) Jan 8, 2016
When the world's leading carmakers unveil glitzy new models at the Detroit auto show next week, Volkswagen's chief executive Matthias Mueller will be in town on a less glamorous mission. In his first US visit since American regulators said VW cheated pollution tests, Mueller will apologize over a scandal that plunged the German auto giant into the deepest crisis of its history and could cost ... read more


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