VW SCANDAL: EIB could withdraw funds as hardware fix needed

Time 10:14 am, October 12, 2015

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.’

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.


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