Volkswagen faces first mammoth diesel lawsuit on home turf

Yahoo – AFP, Yann SCHREIBER, September 30, 2019

Dieselgate is now 'part of the group's history' (AFP Photo/John MACDOUGALL)

Braunschweig (Germany) (AFP) - A case pitting hundreds of thousands of owners of manipulated diesel cars demanding compensation opened against German car behemoth Volkswagen Monday, four years after the country's largest post-war industrial scandal erupted.

Around 450,000 people have joined a first-of-its-kind grouped proceeding, introduced by lawmakers after the "dieselgate" emissions cheating scandal broke in 2015.

The first hearing in what is likely to be a grinding, years-long trial began at 10 am (0800 GMT) in Brunswick, around 30 kilometres (19 miles) from VW headquarters in the northern city of Wolfsburg. The second is planned for November 18.

Consumer rights group VZBV, representing the plaintiffs, says the German carmaker deliberately harmed buyers by installing motor control software that allowed vehicles to pollute far more on the road than under lab conditions.

"I would like Volkswagen to reimburse the purchase price" said Andreas Sarcletti, a customer who had made the trip from nearby Hanover, "but I'm worried the trial is going to last a very long time."

Uwe Reinicke, who bought a manipulated vehicle in 2011, said "I don't think it's right, the way Volkswagen treated us."

VW fooled authorities about the real level of harmful emissions from 

its cars (AFP Photo/THOMAS KIENZLE)

"VW ought to finally, properly admit that they lied," he added.

The trial is Germany's largest so far in the tentacular diesel scandal, which last week saw VW chief executive Herbert Diess charged with market manipulation over his role.

50 questions for judges

"Several regional tribunals have already found against Volkswagen" and granted plaintiffs compensation, judge Michael Neef noted as the proceedings opened.

Alongside the grouped proceeding, 61,000 individual lawsuits have been filed in Germany, but Brunswick may not follow those earlier rulings.

Of the around 50 questions about the case judges must decide on, whether Volkswagen "caused harm" by acting "dishonestly" will be "one of the central, difficult questions," Neef added.

"We're confident of our chances, since Volkswagen committed fraud," VZBV lawyer Ralph Sauer told AFP ahead of the hearing.

VW lawyer Martine de Lind van Wijngaarden countered that there was "no harm and no basis to this claim" because "hundreds of thousands of cars are used" on the roads without problem.

A lot of files to get through (AFP Photo/Ronny Hartmann)

Judges said that even if they find there was harm, the amount diesel owners receive in compensation would be based on the present-day market value -- not the original purchase price.

Every owner registered in the trial will have to claim individually, even if the plaintiffs were to win the case.

VW thinks a final judgement could arrive in 2023 at the earliest, if the case is appealed all the way to the Federal Court of Justice.

Individual proceedings could then take at least another year -- in the court of first instance.

By then, the cars' market value will have further eroded, making a buyback cheaper for the firm.

Instead, the judges mentioned the possibility of a settlement, while allowing that such talks "would not be easy" given duplicates and foreign residents on the list of plaintiffs.

The VZBV says it is "open" to an out-of-court settlement but "in that case, VW would have to pay a significant sum after all," Mueller told AFP.

VW for its part finds a mass settlement "hard to imagine".

Most of VW's fines payments have gone to the US (AFP Photo/Geoff Robins)

30 billion euros

Since 2015, when Volkswagen admitted to manipulating 11 million vehicles worldwide to fool emissions tests, the scandal has cost the group over 30 billion euros ($33 billion) in fines, compensation and legal costs.

Most of that sum -- $22 billion -- has gone to the US, while in Germany VW has so far paid just 2.3 billion euros spread across three fines.

Alongside car owners, investors are claiming damages for losses they suffered when the group's share price plummeted after it came clean.

And earlier this week, chief executive Herbert Diess and supervisory board chief Hans Dieter Poetsch were charged with market manipulation.

Former chief executive Martin Winterkorn, who stepped down over the scandal, has been also charged with fraud.

The clouds of scandal still haven't blown away (AFP Photo/Julian Stratenschulte)

Away from the legal battlegrounds, "dieselgate" has sped up the fuel's decline from its status as lower-carbon alternative to petrol, favoured with government subsidies.

In Germany, its market share among new registrations has fallen from 46 to 33 percent. Car bans are also looming in some city centres because of the level of nitrogen oxides (NOx) emissions.

The diesel scandal is "part of the group's history" just like the famous Beetle and Golf models, says VW brand chief Ralf Brandstaetter.

"The diesel crisis was a catalyst for our transformation," Brandstaetter told AFP in a recent interview, pointing to VW's 30 billion euro investment in a new electric range to "regain society's respect".

German prosecutors charge ex-VW boss Winterkorn with fraud

Yahoo – AFP, April 15, 2019

German prosecutors say former Volkswagen CEO Martin Winterkorn was as
 "guarantor" to authorities and customers that the group was not selling cheating
vehicles "even after he knew about the illegal manipulations" (AFP Photo/Tobias
SCHWARZ)

Frankfurt am Main (AFP) - German prosecutors said Monday they had charged former Volkswagen chief executive Martin Winterkorn and four other managers over the group's "dieselgate" emissions cheating scandal.

They "are accused of multiple crimes realised in a single criminal action, especially a particularly serious case of fraud and an infraction of the law against unfair competition," the prosecutors said in a statement.

It was not immediately clear whether the other accused -- who were not named -- still work at VW or have since left the company.

Winterkorn has been singled out for his role as a "guarantor" to authorities and customers that the group was not selling cheating vehicles "even after he knew about the illegal manipulations" -- knowledge the prosecutors said he had "from May 25, 2014".

That date was more than a year before VW publicly admitted to fitting 11 million vehicles with software to make them appear less polluting in the lab than in real driving conditions.

"In the end, this resulted in the imposition of higher fines against Volkswagen AG in Germany as well as the USA," the prosecutors said.

As well as failing to inform authorities of the cheating, VW "with the knowledge and approval of Winterkorn" issued a software update in November 2014 whose only purpose was to cover up the so-called "defeat devices" that enabled the cheating, said the statement.

VW shares were little moved by the charges, gaining 0.4 percent to trade at 154 euros around 1:15pm in Frankfurt (1115 GMT), slightly outperforming the DAX blue-chip index.

The Wolfsburg-based group has so far suffered costs of 29 billion euros ($32.8 billion) related to dieselgate, much of it in fines, compensation and buyback schemes in the United States.

In Germany, the group has paid 1.8 billion euros spread over two fines.

Aftershocks from the scandal have been serious enough to change the gigantic firm's course, with bosses now making a massive bet on electrification over the next decade.

But the legacy of dieselgate is still clinging to VW, with hundreds of thousands of customers in Germany bringing cases demanding compensation for their manipulated vehicles.

And investors have opened two court cases against VW and its holding company Porsche SE, saying bosses should have informed markets sooner about the likely financial impact of the cheating.

BMW, Daimler, VW broke antitrust rules, EU says in 'preliminary view'

France24 –AFP, 5 April 2019

Exhaust from cars is a major source of air pollution in urban areas and numerous
cities have enacted or are considering restrictions on driving heavily-polluting
vehicles in city-centres dpa/AFP/File

Brussels (AFP) - The European Union warned German car giants BMW, Daimler and Volkswagen on Friday that a preliminary inquiry has concluded they colluded not to compete on emission control technology.

"As a result, European consumers may have been denied the opportunity to buy cars with the best available technology. The three manufacturers now have an opportunity to respond to our findings," EU competition commissioner Margrethe Vestager said.

The EU Commission has concluded that BMW, Daimler and the VW group -- Volkswagen, Audi and Porsche -- held so-called "circle of five" meetings to rig competition in emissions technology.

This allowed them to limit the introduction of "AdBlue" or urea to diesel engine exhaust gases, reducing its effectiveness as a way to produce cleaner emissions, the statement said.

The firms also -- "in the Commission's preliminary view" -- colluded to avoid or delay introducing OPF particle filters to reduce harmful particles in petrol exhaust fumes.

The findings form the basis of a "statement of objections" to which the firms will have a chance to respond before the Commission decides whether to pursue a case under competition rules banning cartel agreements.

A Damiler spokeswoman told AFP the firm was aware of the report but had already been cooperating with investigators and "does not expect to receive a fine in this matter".

VW 'dieselgate' fraud: Timeline of a scandal

Yahoo - AFP, September 10, 2018

Dieselgate has cost VW more than 27 billion euros in fines, vehicle buybacks and
recalls and legal costs (AFP Photo/Patrik STOLLARZ)

Frankfurt am Main (AFP) - As Volkswagen faces the wrath of investors in the first mass "dieselgate" lawsuit on its home turf, here's a look at how the emissions cheating was uncovered and the fallout for the auto giant:

2014

US researchers at the University of West Virginia discover that certain VW diesel cars emit up to 40 times the permissible levels of harmful nitrogen oxide when tested on the road.

2015

September 18: The US Environmental Protection Agency accuses VW of duping diesel emissions tests using so-called "defeat devices".

September 22: Volkswagen admits installing software designed to reduce emissions during lab tests in 11 million diesel engines worldwide. VW shares plunge by 40 percent in two days.

September 23: Chief executive Martin Winterkorn steps down but insists he knew nothing of the scam.

2016

April 22: VW announces a net loss for 2015, its first in 20 years, after setting aside billions to cover the anticipated costs of the scandal.

June 28: VW agrees to pay $14.7 billion in buybacks, compensation and penalties in a mammoth settlement with US authorities. The deal, which covers 2.0 litre diesel engines only, includes cash payouts for nearly 500,000 US drivers.

September 21: The first VW investors file lawsuits in a German court seeking billions in damages. They accuse the automaker of failing to communicate about the crisis in a timely way.

December 8: The European Commission launches legal action against seven EU nations including Germany for failing to crack down on emissions cheating.

2017

January 11: VW pleads guilty to three US charges including fraud and agrees to pay $4.3 billion in civil and criminal fines.

Graphic on the Volkswagen emissions cheating scandal. (AFP Photo/AFP)

As part of the plea deal, VW signs up to a "statement of facts" in which it admits that the cheating dates back to 2006, but it remains unclear how much the top brass knew about the scam.

January 27: German prosecutors say they are investigating Winterkorn on suspicion of fraud, accusing him of knowing about the defeat devices earlier than admitted. He is already under investigation for suspected market manipulation over the scandal.

February 1: Car parts maker Bosch, which supplied elements of the software, agrees to pay nearly $330 million to US car owners and dealers but admits no wrongdoing.

VW says it will pay at least $1.2 billion to compensate some 80,000 US buyers of 3.0 litre engines as well as buying back or refitting their vehicles.

August 25: A Michigan court sentences VW engineer James Liang to 40 months in prison and a $200,000 fine, after he pleads guilty to conspiracy to defraud the US and to violating the US Clean Air Act. He had asked for a more lenient sentence after cooperating with investigators.

December 6: VW executive Oliver Schmidt, who was arrested while on holiday in Florida, is sentenced to seven years in jail after pleading guilty to fraud and violating the US Clean Air Act.

2018

February 23: VW roars back to profit after record sales in 2017.

February 27: A German court paves the way for cities to ban the oldest diesels from their roads to combat air pollution.

April 12: VW brand chief Herbert Diess hastily replaces CEO Matthias Mueller after he too lands in prosecutors' sights.

April 20: A top manager at Porsche, a VW subsidiary, is arrested in Germany as part of "dieselgate" inquiries.

May 3: Winterkorn is indicted in the US, accused of trying to cover up the cheating.

June 13: VW agrees to pay a one-billion-euro fine in Germany, admitting its responsibility for the diesel crisis. The scandal has now cost the group over 27 billion euros.

June 18: Rupert Stadler, CEO of VW's Audi subsidiary, is arrested in Germany, accused of fraud and trying to suppress evidence.

Ryanair warns Dutch passengers to claim compensation directly

DutchNews, July 24, 2018

Photo: Ryanair.com

Budget airline Ryanair has written to a Dutch organisation which helps passengers claim compensation for delays saying it is disturbing ‘the good relationship with passengers,’ according to broadcaster NOS. 

The letter calls on EUclaim to stop putting in claims on behalf of passengers who face delays or whose flights have been cancelled. Some 700 Dutch nationals submitted claims via the bureau last week after their flights were cancelled or delayed following strikes by Ryanair staff, NOS said. 

In the letter, Ryanair asks the organisation to advise passengers to get in touch with the airline directly. If it does not, the airline says it will ‘take all necessary measures’ to protect the contractual relationship with its passengers. 

Ryanair has a claim formula on its website and states that all claims will be dealt with within 10 days. 

However, EUclaim, which charges 29% of any payout plus a 26 admin fee per person, says passengers tend to turn to it for help after being turned down by Ryanair. 

A spokesman for the Dutch consumers organisation Consumentenbond, which according to NOS works together with EUclaim, says the Ryanair letter is ‘shocking’. ‘We know that it is often very difficult for consumers to get justice,’ a spokesman told the broadcaster. 

Under EU law, airline passengers are entitled to compensation if their flight has been delayed for more than three hours, ‘if the airline cannot prove that the delay was caused by extraordinary circumstances which could not have been avoided by reasonable measures.’

Sales of e-bikes take off, as do internet bike sales, says ABN Amro

DutchNews, May 30, 2018

Dutch consumers are buying more e-bikes and increasingly fewer traditional bikes, according to a study published on Wednesday by ABN Amro. 

Sales of e-bikes soared by 75% over the past seven years and one-third of all new bicycles are now powered by a battery,  the study said. Sales of traditional bikes, meanwhile, have fallen back 37% since 2010. 

ABN Amro is forecasting bike sales 3% higher in 2018. 

More bikes are also being sold online. In 2013, fewer than one in 10 bikes was bought online but that has now risen to over 25%. 

The total Dutch bike fleet is probably over 22.7 million by now – 1.3 bikes for every man, woman and child in the country –  roads lobby group Bovag said recently. 

‘We can’t give exact numbers because bikes don’t have number plates and are not registered centrally,’ a spokesman said.

Volkswagen given fine for misleading Dutch consumers over diesel scandal

DutchNews, November 28, 2017

Pollution from car engine. Photo: Depositphotos.com

Car maker Volkswagen has received the highest possible fine for misleading consumers from the Dutch Authority for Consumers & Markets. 

On Tuesday the body announced a penalty of €450,000 for ‘unfair commercial practices’ as Volkswagen advertised certain cars as eco-friendly ‘while the results of emission tests had been manipulated by illegal software.’ 

Dutch consumer organisation the Consumentenbond believes this fine may have cleared the way for people to bring personal claims for damages, according to the NOS broadcaster. It wants to discuss compensation with the German manufacturer. 

In autumn 2015, Volkswagen admitted that it had sold 11 million cars worldwide with secret ‘defeat device’ software that ensured it would pass emissions tests in a laboratory, while the cars emitted higher levels of pollution on the road. 

Cateautje Hijmans van den Bergh, an ACM board member, said in a press release: ‘We have established that Volkswagen has misled Dutch consumers about the emission of harmful pollutants. Therefore, ACM has imposed a fine [to] send a clear signal. Consumers are entitled to [receive] reliable information.’ 

Volkswagen has set aside almost $15 billion to compensate American customers but yet discussed any payment in Europe, although customers with the cars involved do have an extra two-year guarantee, reports broadcaster NOS. 

Volkswagen told DutchNews.nl in a statement: ‘Volkswagen disagrees with the decision taken today… and intends to appeal against it. Volkswagen does not believe it infringed Dutch consumer protection laws. 

‘All Dutch customers who acquired a Volkswagen, SEAT, Audi or SKODA vehicle with an EA189 diesel engine have been treated fairly. All vehicles have kept type approval and so remain roadworthy, and there has been no violation of emissions regulations or laws. Our customers remain our number one priority and we are working hard to earn back their trust.’

United Airlines finally apologizes, as image takes beating

Yahoo – AFP, Nova SAFO, With Luc Olinga in New York and Roland Jackson in London, April 11, 2017

Oscar Munoz, President and CEO of United Airlines says the company will
conduct a "thorough review" of its procedures, including "how we handle oversold
situations" and how the airline partners with airport authorities and law
enforcement (AFP Photo/SAUL LOEB)

Chicago (AFP) - The chief executive of embattled United Airlines unequivocally apologized Tuesday for an incident in which a passenger was dragged off a plane, and promised a thorough review of the airline's practices.

The apology came after a torrent of criticism of the carrier's action on a flight Sunday and its initial explanation of it. In images now seen around the world, a passenger was forcefully removed and bloodied in the process -- the entire event captured on video by passengers and posted on social media.

The 69-year-old passenger had refused to be "bumped" off the overbooked flight -- an airline practice that has come under increased scrutiny since the incident.

"I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all the customers aboard," CEO Oscar Munoz said.

"I want you to know that we take full responsibility and we will work to make it right."

The comments were in stark contrast to the company's initial response, in which it seemed to at least partially blame the passenger, inflaming worldwide outrage.

US media published an email Munoz sent earlier to employees, in which he said the passenger "defied" authorities and "compounded" the incident.

"Our employees followed established procedures for dealing with situations like this," the CEO wrote.

'No compassion or concern' 

Andy Holdsworth, a crisis management specialist at the British PR firm Bell Pottinger, said United's initial response focused on the wrong thing.

"Whilst the passenger's behavior was not good, United have shown no compassion or concern for the man," he said.

Munoz said Tuesday that the company will conduct a "thorough review" of its procedures, including "how we handle oversold situations" and how the airline partners with airport authorities and law enforcement.

He promised to release the results of the review by April 30.

But the public relations damage was done, with calls for boycotts, the US Department of Transportation promising a review of the airline's actions, and even the White House weighing in.

"Clearly, when you watch the video, it is troubling to see how that was handled," White House Press Secretary Sean Spicer said.

The furor battered United's stock Tuesday, sending it down 2.9 percent in afternoon trading and closing down 1.1 percent.

It was the second time in about two weeks the airline found itself in the middle of a firestorm.

In late March, two teenage girls were prevented from boarding a flight in Denver because they wore leggings. The airline defended its action at the time by saying the girls were flying on passes that required them to abide by a dress code in return for free or discounted travel.

"They will need to be careful that these small incidents all start to add up and only remind us of the last incident as well as the current one," Holdsworth said.

'You don't really have any rights'

The passenger on the overbooked Sunday flight from Chicago to Louisville, Kentucky was one of four involuntarily bumped off in order to make room for United crew that needed to be repositioned.

The incident shined a new light on the practice of overbooking and bumping passengers off flights, which airlines increasingly rely upon to avoid losing money on empty seats when some passengers do not show up for scheduled flights.

If they were to stop overbooking, "the only way of trying to compensate for that over the long term would be to raise fares on everyone else," said industry analyst Robert Mann.

Instead, airlines sell more tickets than there are seats on a plane, and are generally able to properly forecast demand to avoid major disruptions in getting passengers to their destinations, Mann said.

But, sometimes, they miscalculate and there are more passengers than a flight can handle.

In those instances, airlines offer travel vouchers and cash compensation to entice passengers to voluntarily give up their seats for later flights.

When enticing does not work, airlines have wide latitude under the law.

"If you're still in the terminal waiting to board, you can be told you can't board, even if you have a reservation," Mann said.

"And once you're on board, you are subject to being deplaned based on the order of the crew. So you don't really have any rights."

Last year, 434,000 passengers volunteered to be bumped off flights, while another 40,000 were bumped involuntarily and compensated.

Image takes a beating: Protesters rally against United Airlines’ forcible removal of a passenger from a plane at O'Hare Airport in Chicago pic.twitter.com/PZ2mLnHf8z

— AFP news agency (@AFP) April 12, 2017

GM first to deliver mid-priced, all-electric car

Yahoo – AFP, December 13, 2016

General Motor's (GM) Chairman and CEO Mary Barra unveils the new
Chevrolet Bolt, a long range and affordable electric vehicle going into production
this year, January 6, 2016 at the CES 2016 Consumer Electronics Show in
Las Vegas, Nevada (AFP Photo/SOPHIE ESTIENNE)

New York (AFP) - General Motors began deliveries Tuesday of the first all-electric car model aimed at the middle market, getting a head start on Tesla Motors and other competitors.

GM delivered the Chevrolet Bolt EV to three customers in California, including one in Fremont, where Tesla has a big factory.

The Bolt can travel up to 238 miles on a full charge. It lists for $37,495, but consumers are eligible for clean fuel tax credits of up to $7,500, GM said.

GM plans to accelerate deliveries of the Bolt next year as part of its campaign to reposition itself as a mobility company of the 21st century.

Tesla also is working on an all-electric Model 3 aimed at the middle market, but it is not expected to hit the market until the end of 2017. Tesla's higher-end Model S already is available but the price starts at $68,000.

Other manufacturers also are working on comparable all-electric models, including Ford, whose sedan is called the "Model E" and Fisker, led by Henrik Fisker, who previously designed cars for BMW and Aston Martin.

US regulator finds another cheat device in Audi car

A year on since the parent party Volkswagen was hit with near bankruptsy, German media has reported the discovery of a second illegal software function in automatic transmission Audis.

Deutsche Welle, 6 November 2016

German newspaper "Bild am Sonntag" reported on Sunday that the Californian Air Resources Board (CARB) had discovered another illegal software function in an automatc transmission in Audi last summer.

The paper said the device, which was not the same as the one which triggered last year's diesel emissions scandal at Audi's parent company, Volkswagen, was also used in gasoline and diesel-powered cars in Europe.

The illegal software deactivated pollution controls on more than 11 million diesel vehicles sold worldwide, triggering the deepest business crisis in the German carmaker's history.

Investigators found that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems.

Unorthorized

VW said earlier this week, however, that the use of the software  “did not constitute an unauthorized shutdown device under European law.”

According to "Bild am Sonntag" the most recently discovered software was installed on many Audi models with a certain automatic transmission. If the steering wheel does not turn, this indicates laboratory testing conditions, and a gear shifting program which produces less carbon dioxide is activated.

If the driver turns the steering wheel by more than 15 degrees, however, the "warm-up strategy" deactivates, "Bild am Sonntag"said.

Audi reportedly stopped using the software in May 2016, just before CARB discovered the manipulation in an older model, the paper said, adding that the carmaker had suspended several engineers in connection with the matter.

ksb/jm (Reuters, AFP)

German prosecutors extend 'dieselgate' probe to VW chairman

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Volkswagen chief executive Martin Winterkorn has headed the German

auto giant since 2007 (AFP Photo/Daniel Roland)

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Kia, Hyundai reach $41.2 mn settlement with US states

‘Delivery vans break pollution rules, emissions up to eight times higher’

Suzuki faces claims of false fuel economy tests

Nissan to be fined for 'emissions cheating' in South Korea

More carmakers caught in headlights of VW engine-rigging scandal
Diesel cars break emission limits in real-world tests: TNO

Kia, Hyundai reach $41.2 mn settlement with US states

Yahoo – AFP, October 27, 2016

Hyundai and Kia, which is partially owned by Hyundai, claimed fuel efficiency
ratings of up to 40 miles per gallon for some of their cars, exaggerating the true
consumption rate by one to six miles per gallon (AFP Photo/Justin Sullivan)

Washington (AFP) - South Korean automakers Kia and Hyundai reached a $41.2 million settlement with US states over inflated fuel economy claims for their cars, officials said Thursday.

The settlement with 33 states and the District of Columbia was the latest fallout after the automakers were caught in 2012 artificially boosting the fuel economy ratings.

"Consumers who do thoughtful research and purchase a vehicle in line with their budget and their desire to protect the environment should be able to trust what automakers say about their cars," Karl Racine, District of Columbia attorney general, said in a statement.

Hyundai and Kia, which is partially owned by Hyundai, claimed fuel efficiency ratings of up to 40 miles per gallon (7.1 liters per 100 km) for some of their cars, exaggerating the true consumption rate by one to six miles per gallon.

About 1.1 million vehicles in the 2011-2013 model-years sold in the United States and Canada had bogus fuel ratings, the companies admitted. They both agreed in 2012 to reimburse car owners for their additional fuel costs.

Both companies also agreed in 2014 to pay a combined $300 million in fines and regulatory credit forfeitures to settle a two-year probe by the US Environmental Protection Agency and Justice Department.

The news follows this week's approval of a $14.7 billion class-action settlement of Volkswagen's case in US courts over the German automaker's emissions cheating scandal.

Suzuki faces claims of false fuel economy tests

Japanese carmaker Suzuki is the latest automotive company to be caught in an improper fuel economy testing issue, following similar admissions by Mitsubishi last month.

Deutsche Welle, 18 May 2016

Suzuki admitted to "discrepancies" in its fuel economy and emissions testing, after media reports surfaced on Wednesday saying an internal audit uncovered irregularities in the company's methods.

"Some discrepancies were found in the automobile emission and fuel-efficiency testing process between the testing method required by the government and the one Suzuki employed," the company said in a statement.

Sixteen models and about two million cars are affected, but Suzuki said all the vehicles in question were only sold within Japan. The carmaker also denied actively rigging the results of testing.

"Any wrongdoing, such as manipulation of fuel efficiency data, were not found," Suzuki said. Company chairman Osamu Suzuki visited the transport ministry to discuss the issue.

The ministry urged the country’s carmakers to launch internal reviews, after rival Mitsubishi reported in April that it actively cheated on fuel economy tests.

Mitsubishi admitted that it had been using obsolete fuel economy tests since new regulations were introduced more than 25 years ago. It is also expected to submit a report to the transport authorities on Wednesday.

Suzuki shares dove 15 percent on the news, as investors sold off stock in the small carmaker, which sells about three million vehicles annually.

jd/uhe (dpa, AFP)

Nissan to be fined for 'emissions cheating' in South Korea

Yahoo – AFP, Jung Ha-Won, May 16, 2016

South Korea is fining Nissan for allegedly manipulating emissions data on a
popular diesel sports utility vehicle (AFP Photo/Toshifumi Kitamura)

Seoul (AFP) - South Korea said Monday it will fine Nissan for allegedly manipulating emissions data on a popular diesel sports utility vehicle, bringing the Japanese car giant into a widening global scandal that has already ensnared Volkswagen and Mitsubishi.

Seoul said it would order recalls of hundreds of Qashqai model SUVs after tests revealed an emission defeat system that made the vehicle appear to be less polluting than it really was.

The decision follows an investigation into 20 diesel-powered cars that began last December after German carmaker Volkswagen admitted having installed devices aimed at cheating emissions tests in 11 million diesel engines.

Nissan would be fined 330 million won ($280,000), the environment ministry said Monday.

"Our investigation... concluded that Nissan illegally manipulated emission data," it said in a statement.

Japanese transport ministry officials raid theTokyo headquarters of Mitsubishi after

the firm admitted manipulating fuel economy figures. Rough cut (no reporter narration)

Hong Dong-Kon, a ministry official handling transport-related regulations, added: "A group of auto industry experts we consulted with also agreed that this is a clear manipulation of emission data."

State tests showed the Qashqai switched off its emission reduction device when the car temperature reached 35 degrees Celsius to stop the vehicle from overheating, whereas other cars waited until the temperature reached 50 degrees.

The ministry also said that when the Qashqai's emissions reduction device stopped working, the level of emissions was about the same or higher than the Volkswagen cars equipped with emissions-cheating software systems.

Nissan will be given 10 days to present its opinions on the Qashqai issue before Seoul officially carries out punitive measures, the environment ministry said.

VW crisis

VW was plunged into its deepest-ever

 crisis last year when it emerged it had

 installed defeat devices into cars all over

the world (AFP Photo/Odd Andersen)

Nissan insisted it "does not manipulate data related to our vehicles" in a statement sent to AFP.

"Nissan has not and does not employ illegal defeat or cheat devices in any of the cars that we make."

The statement added: "Furthermore, following stringent testing and using similar standards to the Korean tests, EU authorities have concluded that Nissan vehicles they tested used no illegal defeat device.

"Although the conclusions reached by the Korean authorities are inconsistent with those of other regulators, Nissan will carefully assess and consider appropriate next steps.

The company said it was "committed to upholding the law" and was "continuing to work with the Korean authorities".

Unlike its rivals Volkswagen and Mitsubishi, Nissan -- Japan's number two automaker -- has so far avoided being embroiled in any emissions or fuel economy cheating scandals.

Mitsubishi last month admitted it had been falsifying fuel-economy tests for years, manipulating data to make cars seem more efficient than they were in reality.

The scandal includes mini-cars produced by Mitsubishi for Nissan as part of a joint venture, but Nissan is said to have had no part in the cheating.

Volkswagen emissions scandal (AFP Photo)

Nissan threw a surprise lifeline to Mitsubishi last week by offering to buy 34 percent of its shares, but its top executive warned Friday that he would kill the $2.2 billion offer if the Mitsubishi scandal spreads beyond Japan.

VW was plunged into its deepest-ever crisis last September when it emerged it had installed defeat devices into cars all over the world.

The automaker has acknowledged 11 million vehicles are fitted with software that reduces pollution levels only when the car is being tested for emissions.

In late April the company said it was setting aside 16.2 billion euros ($18.2 billion) in provisions to cover the anticipated costs of the scandal.

Last November Seoul ordered Volkswagen Korea to recall more than 125,000 diesel-powered cars sold in the Korean market and fined the firm 14.1 billion won.