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VW SCANDAL: EIB could withdraw funds as hardware fix needed

Time 6 years ago

THE European Investment Bank could recall loans it gave to Volkswagen, its president told a German newspaper.

Speaking to Sueddeutsche Zeitung, Werner Hoyer said that the EIB gave Volkswagen loans intended for areas such as the development of low emissions engines.

These could now be recalled following the emissions scandal, he said.


The German paper has reported that around €1.8bn (£1.3bn) of these loans remain outstanding out of some €4.6bn (£3.4bn) lent to Volkswagen since 1990.

‘The EIB could have taken a hit [from the emissions scandal] because we have to fulfil certain climate targets with our loans,’ Mr Hoyer told the newspaper.

He added that the EIB would conduct ‘very thorough investigations’ into what its loans were used for by VW.

If it was they had been used for purposes different to what was intended, then the bank would ‘ask ourselves whether we have to demand loans back.’

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Meanwhile, mechanical hardware changes will have to be made to put right nearly half the number of vehicles affected by the VW emissions scandal, according to Autocar.

The German manufacturer admitted that just under 11 million of its vehicles globally have the illegal ‘defeat device’ software discovered during US emissions tests in September. German officials have now suggested that 3.6 million of the group’s VW, Skoda, Seat and Audi models – likely to have the 1.6-litre variant of the EA189 diesel engine – will need hardware alterations to solve the issue.

Volkswagen’s US executive, Michael Horn, explained to a Congressional committee on Thursday that the fix could mean either a more complicated catalytic convertor or an NOx clean-up system that was urea-based, or maybe even both.

MORE ON VW SCANDAL:

UK’s VW boss to face MPs next week

US boss admits company was informed last year

Vehicles recalled from January as rebuild process begins

Muller warns of ‘painful’ cuts

Investigation widened to include other brands

Ford and BMW defend German car industry

UK owners won’t be hit with tax rise

Car supermarket slashes German vehicle prices

Thousands of vehicle sales are halted in UK

Almost 1.2 million vehicles affected in UK

Values ‘marginally affected’ by emissions

700,000 Seat cars fitted with emissions test ‘cheat’ software

Winterkorn facing probe by German prosecutors

Audi reveals more than 2m of its cars worldwide have ‘cheat’ software

Switzerland bans sale of diesel Volkswagens

Carmaker admits diesel scandal affects VW Group vehicles

Confusion among VW dealers

Government was warned about emissions testing

Department for Transport launches emissions investigation

CAP predicts no impact on Volkswagen residual values

Skoda, Seat and Audi dealers braced for bad news

UK businesses hit by ripple effect

Biggest UK lawsuit could be on the cards

VW just tip of the iceberg amid claims tests are open to abuse

Winterkorn resigns

SMMT calls for calm

Audi and VW brand ‘damaged’

Chief executive ‘could lose his job’

VW faces billions in fines

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