Dieselgate: Volkswagen to repay green subsidies
Emissions scandal sees governments ask for their cash backSpain has joined a list of countries demanding Volkswagen pay back subsidies it received on its “green” clean diesel models.
While the US$51 million green subsidy payment from California to Volkswagen for its allegedly clean diesels grabbed the initial headlines, Spain is now demanding the company hand back a €1000-a-car subsidy.
The payments, which started in 2009 and went to buyers of low-emission cars to help keep the car industry buoyant during the worst of the last financial crisis, have become a focal point for political outrage over #Dieselgate in Spain.
While heavily indebted Spain has long been seen as an economic handbrake on Europe, its new car market has been regaining its strength for more than a year, until the national car company, VW subsidiary SEAT, yesterday admitted more than 700,000 of its cars had been caught in the fraud scandal.
SEAT is now at the core of the subsidy payback after the Spanish Industry Minister, Jose Manuel Soria, reacted yesterday. Soria demanded that Volkswagen, not the buyers or current owners of the subsidized EA189-powered four-cylinder diesel cars, repay the subsidy.
Spain also joined Volkswagen’s increasingly long list of legal trouble spots Monday, with far right political group filing criminal complaints against the head of Volkswagen’s three Spanish operations.
Manos Limpias (Clean Hands) accused SEAT Spain Chairman Francisco Sanz, Volkswagen-Audi Spain Chairman James Muir and Volkswagen Navarra Chairman Ulbrich Thomas of defrauding car buyers and the Spanish tax office, as well as damaging the environment.
Manos Limpias is the same organization that has doggedly (and successfully) pursued corruption allegations against the Spanish King’s sister and brother-in-law.
Dieselgate related reading:
Huge recall planned, other brands hit
Audis affected top two million
ACCC issues statement on VW emissions saga
Müller locked in as Volkswagen CEO
BMW forced to deny emissions rigging
Volkswagen boss Winterkorn to go as crisis spreads
Dieselgate worsens, 11m vehicles could be affected
Dieselgate could cost VW CEO his job
US EPA issues Volkswagen with a warning
Image: Greenpeace / Pedro Armestre
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