VW SCANDAL: Manufacturer faces tax evasion probe as woes continue to mount

Time 10:45 am, November 25, 2015

VOLKSWAGEN’S chance of any quick recovery from the emissions scandal has taken another hit, with German prosecutors launching an investigation into possible tax evasion by the Wolfsburg marque.

The case is centred around whether VW gave incorrect CO2 figures on its vehicles, which influences how much tax the German government received.

The German tax system allows its government to calculate automotive taxes yearly, based on CO2 emission levels. In order to do this, they use figures supplied by the manufacturers. If Volkswagen is found to have provided inaccurate numbers, the German government could have been cheated out of a large share of taxes.

According to Automotive News Europe, prosecutors in Brunswick – who are investigating VW’s diesel vehicles – are now officially launching a probe into VW’s dubious emissions readings in its petrol models. Speaking to the website, a spokesperson for the prosecutors called the damage caused by possible tax evasion ‘not insignificant’.

Meanwhile, a German environmental group is claiming that Renault’s latest Espace MPV is producing emissions of up to 25 times over the legal limits.

If the DUH body’s findings are to be believed, the latest Euro 6 1.6-litre diesel engine fitted to the Espace is the offending power-plant. The group claims that it releases up to 2.06 grams of NOx/kilometre, the equivalent of up to 25 times more than EU regulations allow.

According to Reuters, Renault has firmly denied all allegations, stating that ‘the Espace complies with the applicable regulations’.

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