To sum up, Transport Secretary Patrick McLoughlin came out strongly, saying Volkswagen behaved appallingly and deserved to suffer substantial damage.
He said that so far he was satisfied no other carmaker had used emissions cheating software - although not all of them had yet responded to the government.
As for VW’s UK boss Paul Higgs, he said 400,000 UK cars would need fuel injectors fixing, with the recalls starting in January. He hoped they would be completed by the end of 2016 but could not guarantee it.
He said the first car with the default device was sold in the UK in 2008.
And he added that it was implausible senior management would have known about the devices.
But he did not impress some of the committee, with Labour MP Robert Flello saying “[Willis] didn’t seem to know much [about the technical issues] which annoyed me.”
On that note, it’s time to close up and say thank you for all your comments. Good evening.
Here’s some further reading on the diesel scandal and how emissions ran out of control:
Ellman: When will there be further progress?
McLoughlin: Looking for further progress by end of November
And with that the session ends.
On recalls and if some people decide not to part:
McLoughlin: I think most people will want to have their cars recalled.
Ellman: Process seems leisurely. When will we see real changes.
McLoughlin: If these devices were illegal in 1998 and company continued to use or started using them again, these are serious issues. We are only in the early stages.
Ellman: In 2013 Advertising Standard Authority ruled against Audi on false claims on fuel usage. Did that not send alarm bells about the independence of the testing process?
Higgs: that could have been approved by another member state. We may not have been the authority for that particular issue.
Louise Ellman: Is VCA too close to manufacturers?
VCA’s Paul Higgs: during 40 years have been regulator and also requirement to support UK motor industry which is sizeable. Manufacturers have to understand standards.
We are paid by fees, set by legislation, we are required to cover costs of statutory function. So normal in this environment to charge industry for those fees.
Is there a conflict?
Important that manufacturers understand what is required. We only give them an idea of what is required to meet specification or standard.
The data car manufacturers publish, in advertisements etc, for average consumer they are meaningless.
McLoughlin: you could say they’re still a guide, but this data is for constant speed of 55. Not sure people drive constantly at 55 miles.
When company like VW does something like this, casts a spotlight on whole industry and they have to put it right.
Real world testing will I hope go some way to reassuring public they can trust in manufacturers.
Louise Ellman: there are questions over testing and how accurate they are. What are you doing about problems of testing, have been major criticisms of department, when information was available in 2013, perhaps earlier, about discrepencies, department did not appear to act.
McLoughlin: If test done in home country, approved through whole of Europe. Have to get testing system right, right to push for road testing.
We’ve sent letters to Commission, discussions taking place. Will be a speedier move as a result of this.
Ian Yarnold: on lab test whole new test by 2017, then new test on road testing and we are in closing stages of agreement and implementation.
Huw Merriman, Conservative: Has UK considered large fines to disincentivise this type of practice?
In early stages of finding whats gone on what legal powers are available to us. Various areas we can look at.
Updated
Conservative Mark Menzies: owners of affected vehicles will not have higher vehicle excise duty but will VW compensate government for any lost tax revenues.
McLoughlin: vehicle excise duty based on carbon emissions...Still considering exactily what to do.
On pollution, these 1.1m VW cars, if they had run as should, what is the difference in pollution? Says up to 40 times in US?
Department of Transport’s Michael Hurwitz said: We have not yet had information from VW to compare how vehicles do in lab tests compared to real world.
Real issue is that that the lab test is not fit for purpose. Once have run more tests can give more info.
But on this specific issue, pollution probably up by less than 1%?
Yes.
McDonald: should there be link between penalties and funding for environmental issues, as a letter sent to you suggested?
McLoughlin: I havent replied as yet but I will consider issue.
Updated
Stewart McDonald says are you planning to take a more rigorous view on software. I’m also concerned VW said first device was in 2008. Does Vehicle Certification Agency have the skills?
Some of the cars were not approved by VCA, but VCA can answer this.
We are reacting to a situation which is unacceptable. But we have done more than react, we have been pressing for real world testing. This strengthens the case.
Paul Higgs of VCA:
If you hide a code in the engine management system, it’s like hiding a virus in a programme. Difficult to find.
Far simpler to have a test process going forward that would make it difficult for a defeat device to work.
Updated
Conservative Will Quince says trust has been shattered but we are supposed to trust them. Should all motor manufacturer open up their software to regulators.
McLoughlin: We need to move whole dynamic to real world testing. We have been pressing for this for some time. Something like defeat devices would not be applicable under those circumstances.
But don’t think we should judge whole industry on what one player has been doing.
Is he satisfied no other manufacturer has used emissions cheating software?
McLoughlin says he is satisfied so far from the responses received from other manufacturers, though some have not yet responded. We expect them by end of month.
Do you accept what they say?
Wouldn’t expect any reputable company to deliberately mislead when asked direct questions.
But committee might have other questions and we will look at what committee requests. It covers a number of departments, not just transport.
Labour MP Robert Flello says: Willis says he wasn’t an engineer and didn’t seem to know much which annoyed me. Has Department done any examination of vehicles involved, whether it is software.
Not wanting to incur your wrath.. I’m not an engineer. I’m trying to get to grips with it. But I have colleagues here.
Ian Yarnold of the Department says: We haven’t examined the cars for defeat devices. We are looking at test results.
Mostly we think its a software issue.
Updated
VW have given us a figure of how many cars with defeat devices. Have you challenged them?
I have no reason to dispute the figures given, 1.1m. 580,000 VW, 49% affected Skoda 11% Seat 77,00.
I hope they have learned, having being exposed, to be as open as possible.
Updated
Now up is Transport secretary Patrick McLoughlin and two members of his department. He is asked when he first knew:
I became aware of weekend of 18.... when various issues came out of US.
They behaved appallingly. These devices were made illegal, and they will suffer substantial damage and they deserve to.
The session with VW’s Paul Willis and the SMMT’s chief executive Mike Hawes ends.
Premature to say reputation of industry severely damaged by this, says SMMT’s Hawes.
Implausible senior management knew - VW's Willis
Do you believe it was a high level corporate decision or rogue engineers.
That debate is pure conjecture. I have no idea. I find it implausible that senior people would have known of these issues.
Updated
Dealers want to know, how safe is their job?
In number of brands, sales are as we would expect, VW sales have dropped a little. But we have an obligation to them and to our customers.
British taxpayer will not be out of pocket - VW's Willis
What steps VW taking to compensate Treasury for money spent to correct your deception?
We can have a conversation, British taxpayer should not be out of pocket. If necessary we will have a meeting with HMRC.
Willis is told VW has treated customers like fools. What compensation?
We have obligation to fix cars, put them right, cars have same MPG we committed to.
Inconvenience?
Scottish representative said what about people in rural areas. We will have to provide loan car, cause minimum inconvenience.
This is a very important issue but this is not a safety issue. We have to make sure we regain trust of customers.
In US offering sales incentive to dealers?What about here?
Over 21,000 dealers. We have changed stocking plans, will not charge retailer network interest on that. We will pay customer satisfaction bonuses ourselves.
Our retailers are the backbone of our business, we need to support them. Plus they are at the forefront for customers questions.
Updated
On US and Europe he said there were different technical specifications.
How arrive at timeframe of end of 2016?
Timeline says end of 2016 but it is uncertain. My objective is to get it completed by then, but there is risk involved with that.
But I’m surprised you can rule out effect on fuel performance?
Didn’t rule it out but it’s the brief to engineer.
Why three months for a solution?
Discussions with regulators, so many different models will take time. Better to be thorough than do it in haste.
But it’s important we write and communicate with customers regularly.
We mishandled the test in terms of software. Now software has to be consistent between test and driving.
Will fix affect fuel bills?
Not the case. Brief to engineers is there cannot be any change to MPG.
Louise Ellman: want to know more about what you will do?
Willis: Over the weekend started writing to all the customers. Can find out if your vehicle is affected on the internet. German authorities in discussion with Wolfsburg, expect them to come up with timeline.
Between now and end of year we will agree what fix is.
Then call cars back progressively, first in first quarter with 2 litre engines.
I intend to contact every single customer in UK. Can’t tell them when exactly we’ll call car back.
We will put these cars right to regain trust.
Will other manufacturers take action against VW for lost sales, because purchasers conned into thinking VW is better? Other manufacturers doing same thing?
Not aware, no evidence any other manufacturer undertaking this activity.
Not aware of any legal action. Perhaps they’re waiting for outcome of investigations.
Updated
The fix for this will be introduction of test for real world driving conditions. Fit a box to test emissions and rule out ambient emissions.
Plan is for monitoring phase next year, regulation to apply from 2017.
Updated
Hawes says he doesn’t think consumer trust is broken. They are aware of published test results, and the results they get on the road.
What is the difference, one or two % or several times?
Could be several times. Industry recognises test is not fit for purpose. All devices such as satnav, bluetooth have to be switched off by law, they didn’t exist when tests developed.
Question to Mike Hawes of SMMT, about carmakers trying to rig tests.
He has never heard of manufacturers trying to rig test in his 20 years in industry.
Why should government - ie my constituents - pay for VWs con, for retesting, asks SNP’s Stewart McDonald.
Willis says there should be discussions with regulators about paying for re-testing.
MPs are getting a little tetchy.
If public can’t trust you on emissions why should they trust you on safety?
Willis says his family drives VW cars.
How do you know it has not affected safety?
This is a different issue.
The testing regime in not fit for purpose, and is in discussion for reform.
Regime for safety is much closer to the real world.
Can two rogue engineers be responsible?
I have no idea, we have to get to bottom of the issue.
Updated
How many people work on software in Germany?
Willis says he does not know, he does not work directly with that area.
Updated
We are determined to find out who, when and why were involved.
Injectors need to be fitted in 400,000 UK cars
Robert Flello, Labour MP, asks if software is the problem, why refit parts?
The software regulated the flow of gas... injectors need to be fixed in 400,000 cars.
Updated
Willis says, in response to questioning from chair Louise Ellman, that there were 8 days between becoming aware and knowing which vehicles on sale were affected.
He says there are question marks over how strong the testing regime is.
First car with defeat device sold in UK in 2008
The first cars sold in the UK with defeat devices were sold in 2008, he said.
I only knew on 19 September when I heard the news from the US.
On 22 September I received news from Wolfsburg there were issues with diesel in Europe.
Updated
And we’re about to start:
Paul Willis is making an opening statement.
He apologies unreservedly that VW let down customers and the wider industry.
We have fallen short of the standards expected, we will take all the necessary steps to regain trust.
My colleagues in Germany are working on a precise technical solution.
On 30 September I announced to customers how to get information. All will get a personal letter.
Ahead of the hearings, here’s our piece earlier from Archie Bland looking at various past corporate crises, from Enron to Northern Rock, and their effect on employees:
Paul Willis, the UK managing director of Volkswagen, has been with the company since 2000.
A Northern Irishman, he took up his present role in February 2014, replacing Paul Willcox who left to rejoin Nissan.
Before that Willis was head of sales and marketing for Skoda China, and has also headed up the VW Passenger Cars brand and VW Ireland.
Previously he worked for a range of other car companies including BMW, Toyota and Ford.
So a real industry veteran then. But it’s probably a safe bet he won’t be used to the attention he’s about to get.
S&P cuts VW credit rating
Another blow to VW, with Standard & Poor’s cutting the company’s credit rating from A to A- with a negative outlook. Under the circumstances it’s not exactly a shock move. S&P said:
We believe VW’s internal controls have been shown to be inadequate in preventing or identifying alleged illegal behavior in the US and misconduct in other regions.
We believe that VW’s breach of U.S. environmental law and potential other laws outside the US represents a significant reputational and financial risk to VW over the medium term.
Updated
Meanwhile the fallout from the scandal has continued to spread.
The European Investment Bank plans to look at whether any of the European Union loans that VW received were used to rig emissions tests. If so, it could demand the money back.
Meanwhile VW is recalling 1,950 imported cars in China.
The hearing will be on Parliament television, and can be viewed here.
VW's British boss and UK transport secretary to be quizzed on emissions scandal
Good afternoon, and welcome to the next stage in the Volkswagen emissions scandal, as the car company’s UK boss and the UK transport secretary separately face MPs to be quizzed about the situation.
As a reminder, the German company has admitted that 11m of its vehicles around the world were fitted with software which cheated emissions tests. The discovery of these “defeat devices” was made by US environmental regulators. It means the cars passed the tests by having their engines switched to a cleaner mode, but once on the road they churned out nitrogen oxide pollutants well above the legal limit.
Close to 1.2m cars are affected in the UK, and VW has promised to start recalling vehicles next year with the aim of having them fixed by the end of 2016.
But many questions remain. How far up the management chain did the cheating go? Were European tests also rigged? How will owners of VW Group cars be affected? How will the cars be repaired and how will they perform afterwards? What happens to drivers who ignore the recall? What did the UK government know and when?
The company’s US boss Michael Horn was up before a congressional hearing last week, and admitted he found it hard to believe that just two rogue engineers were behind the debacle.
Today it is the turn of Paul Willis, managing director of VW Group UK, to face a grilling. He will be questioned by MPs at the transport select committee, along with Mike Hawes, chief executive of the Society of Motor Manufactures and Traders.
After those two, MPs will turn their attention to transport secretary Patrick McLoughlin, alongside two colleagues from his department, Michael Hurwitz and Ian Yarnold, as well as Paul Higgs, chief executive of the vehicle certification agency.
MPs want to hear what action VW is taking, as well as evidence from the SMMT on the wider effects on the motoring sector.
Higgs and McLoughlin will be asked what steps the government is taking to restore public confidence in the vehicle testing regime. The minister is also likely to face questions about reports that civil servants in the department of environment were aware of discrepancies in emissions tests two years ago.
The committee is to be chaired by Labour MP Louise Ellman, and it is all due to kick off at 16.30 BST.