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German police raid VW headquarters

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MICHAEL HORN -

MICHAEL HORN -

US auto boss to admit he was aware of scam a year ago

GERMAN police swept into Volkswagen’s headquarters yesterday, carrying away files and hard disks in their investigation into a massive pollution cheating scandal engulfing the motor giant.

Private apartments were also raided in Volkswagen’s hometown of Wolfsburg and other cities, prosecutors said, as police seek to secure documents and digital data that could point to those responsible for the deception of global proportions.

The raids came as Volkswagen’s US chief prepared to face Congress, when he would tell a committee that he knew more than a year ago that the group’s cars possibly breached pollution rules.

In testimony released ahead of his hearing before a congressional committee, Michael Horn offered a “sincere apology” over Volkswagen’s use of software designed to cheat pollution tests as he vowed full cooperation with the authorities to shed light on the scam.

The German motor giant sank into the deepest crisis of its history after revealing that it equipped 11 million of its diesel vehicles worldwide with software that switches the engine to a low- emissions mode during tests.

The so-called defeat devices then turn off pollution controls when the vehicle is on the road, allowing it to spew out harmful levels of toxic gases.

The shocking revelations have wiped more than 40% off Volkswagen’s market capitalisation, but the direct and indirect costs are still incalculable as the company risks fines in several countries and possible damages from customers’ lawsuits.

In Germany, prosecutors from the state of Lower Saxony said raids were carried out to “secure documents and data carriers that, in view of possible offences, can provide information about the exact conduct of company employees and their identities in the manipulation of exhaust emissions of diesel vehicles”.

A spokeswoman for the prosecutors, Julia Meyer, said several people were targeted in the investigation.

She revealed that sites raided included private apartments, but said it was important “to guarantee the privacy of these people”.

Volkswagen confirmed that it had handed over documents to prosecutors, adding that the company would provide the necessary support to the probe.

Volkswagen’s new chief, Matthias Mueller, has said four employees have been suspended over the deception, adding, however, that he did not believe that top management could have been aware of the scam.

He said the development of an engine was a complex process and that these were tasks in which a director was not directly involved.

A VW spokesman said whether the defeat devices were also activated in Europe was still the subject of investigations.

– AFP

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