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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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