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Spain accuses VW of fraud

vwlogosVolkswagen’s tribulations resulting from its emissions fiddling are set to deepen further after a judge in Spain charged the auto giant with suspected fraud and pollution damage to the environment.

The company is accused of “suspected participation in fraud, causing damage to a great number of people, of subsidy fraud and of damage to the environment”, according to a statement issued on Friday.

VW was eventually caught using software which could temporarily reduce emissions during testing so that engines appeared to meet environmental criteria.

In September it admitted cheating US diesel emissions tests and said that as many as 11 million vehicles around the world could have the illegal software.

By October a Spanish court had opened initial proceedings against VW. Some 700,000 diesel vehicles in Spain, predominately Seat and VW models, are thought to be involved. Seat was acquired by VW in the 1980s.

VW has agreed a $14.7 billion settlement to the US before being hit with an additional $86 million in penalties to the state of California.

Elsewhere in the world, VW is facing regulatory probes and lawsuits filed by car owners as well as investors seeking compensation for the massive fall in the share value.

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Comments  

-5 #2 Martin Williams 2016-07-11 12:29
Take the US out of the frame and Spain would never have had the bottle to go up against the German auto industry. Spain clearly does not have a rigid grip on correct behaviour if its anti-doping authority, for example, is anything to go by. Being considered not fit for purpose but like all the Graeco-Roman EU, focussed on avoiding being caught out - which might explain why Contador has just ducked out of the Tour de France.

If there any more of these less developed EU countries suing VW there would be a strong whiff of ganging up on Germany - the numero uno. So Germany must fight back with all its got; no longer a problem with the UK out of the EU horseplay. No holding back and if that means parking panzers on southern EU lawns then all of us northerners say "Get on with it, Jerry!"
-2 #1 Peter Booker 2016-07-11 08:30
So far, Portugal has missed out here. It is a perfectly lawful means of redistributing some of Germany´s massive current account surplus. A claim against VW could be used to offset some of the losses incurred at BANIF and BES. I am surprised that Juncker has not advised Portugal to follow Spain´s example

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