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Volkswagen Announce the Recall of 1950 Diesel Vehicles in China

Since the defeat devices were discovered in Volkswagen’s cars in September, the commencement of their efforts to take these vehicles off the road has officially begun in China. 1950, out of 11 million suspect vehicles worldwide, have been recalled so far.

The recent scandal has severely tarnished the reputation of the once well-honoured company, causing the CEO to resign and throwing Volkswagen into disrepute. (Volkswagen has lost 35% share value since the scandal broke this September).

Paul Willis, managing director, faces a question and answer session with MP’s to reflect on the scandal.
The worldwide car manufacturers have been forced to apologise following the news that they had developed devices which could trick emissions tests in the US. The said devices are able to detect when the diesel models are undergoing emissions tests, and switch to the low emissions mode accordingly in order to reach more complimentary results.

This means people have been fooled into thinking their cars are more environmentally friendly than they actually are; in essence, they were tricked into buying these diesel cars under completely false pretences – and are justifiably furious.

Pressure is mounting for a worldwide recall, as customers are angry due to being been misled in spectacular fashion, by a company they once trusted. Volkswagen has said 11 million cars are affected worldwide, including five million from its own brand, 2.1 million Audis and 1.2 million Skoda vehicles.


Recall Begins

The aforementioned China recall applies to 1,946 Tiguan sport utility vehicles and four Passat B6 sedans, all imports from abroad, however although these cars have been recalled and the company acknowledges the need for a technical method to be developed in order to remove the faulty devices, nothing has yet been approved by the Chinese authorities.
On Friday, The Californian Air Resources Board (CARB) said it had given the company a deadline of 20 November to develop the fix and announce a plan to refit the cars affected.


European Investment Bank

The EIB previously granted loans to Volkswagen on the condition they would use the money, in part, to develop and manufacture new, environmentally friendly engines; it has been suggested that the EIB will be looking into whether or not there is a basis to recall said loan.
EIB Chief Werner Hoyer told a German newspaper there would be a "thorough investigation" into how the £3.4 billion was spent and if it was not spent as originally intended, then the car manufacturer will have to look into ways to return the loan money in full.


What does this mean for Volkswagen and their customers?

Although the affected vehicles have been confirmed ‘safe to drive’, Volkswagen plans to recall and refit the engines of up to 5 million vehicles worldwide. 

Volkswagen have said they have run their plan of action by government authorities and will write to affected customers, instructing them on the next steps to take.
“The necessary measures will be undertaken at no cost to them,” Volkswagen Group Australia’s managing director John White said.

If you own a car by the German auto-giants, you can visit a website created by them in order to input the VIN number of your car and find out whether or not it is amongst the affected. 

The fact of the matter is that however quickly, professionally and painlessly Volkswagen attempt to deal with the problem, the ‘lost trust issue’ is one that is notoriously difficult to deal with. Customers, staff, dealers and partners alike are bound to feel severe disappointment and major inconvenience if their car has been affected and needs to be recalled.

It will certainly take time and a lot of good PR before Volkswagen becomes a trustworthy, family friendly household name again. Until then, out of pocket shareholders will just have to sit tight…

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