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| VW Chief ‘Personally’ Apologized to Obama Over Cheating | |
| (about 5 hours later) | |
| WOLFSBURG, Germany — The chief executive of Volkswagen said on Thursday that he personally apologized to President Obama this week for cheating on vehicle emissions tests, speaking up for its work force as the German carmaker negotiates penalties with United States officials. | |
| Volkswagen is in talks with American authorities about the fines it must pay for programming engines to cheat on emissions tests. The company said on Thursday that it had set aside 7 billion euros, or $7.9 billion, for legal costs worldwide, even though in theory it faces fines of $18 billion in the United States alone, plus compensation to owners. | |
| Matthias Müller, the chief executive of Volkswagen, had what he described as a two-minute conversation with Mr. Obama during the president’s visit this week to Hanover, not far from Volkswagen headquarters in Wolfsburg. The encounter took place on Sunday at a dinner hosted by Chancellor Angela Merkel for Mr. Obama and representatives of German industry. | Matthias Müller, the chief executive of Volkswagen, had what he described as a two-minute conversation with Mr. Obama during the president’s visit this week to Hanover, not far from Volkswagen headquarters in Wolfsburg. The encounter took place on Sunday at a dinner hosted by Chancellor Angela Merkel for Mr. Obama and representatives of German industry. |
| “I used the opportunity to personally apologize to him for our behavior,” Mr. Müller said during a news conference in Wolfsburg on Thursday. “I thanked him for the constructive cooperation with his officials. Of course I also expressed the hope that I will be able to continue to fulfill my responsibility to 600,000 employees and their families as well as suppliers and dealers.” | “I used the opportunity to personally apologize to him for our behavior,” Mr. Müller said during a news conference in Wolfsburg on Thursday. “I thanked him for the constructive cooperation with his officials. Of course I also expressed the hope that I will be able to continue to fulfill my responsibility to 600,000 employees and their families as well as suppliers and dealers.” |
| Mr. Müller’s mention of Volkswagen workers and their families may have reflected concern that the punishment the company faces could harm those who had nothing to do with any wrongdoing. Lawyers in the case expect the Environmental Protection Agency and the Justice Department to demand penalties that are painful for Volkswagen, but not so severe that they destroy the company. | |
| Thousands of jobs in the United States depend on Volkswagen. The company has a factory in Chattanooga, Tenn., that is preparing to produce a new version of the Tiguan compact S.U.V., as well as an extensive dealer network in the country. | Thousands of jobs in the United States depend on Volkswagen. The company has a factory in Chattanooga, Tenn., that is preparing to produce a new version of the Tiguan compact S.U.V., as well as an extensive dealer network in the country. |
| Mr. Müller said on Thursday that Mr. Obama appeared receptive to his remarks. The Volkswagen chief said he felt encouraged about a solution that would ensure the company a future in the United States. | |
| The White House declined to comment on Mr. Müller’s account of the event. | |
| The German carmaker said last week that it had set aside €16.2 billion to cover costs related to its admission that it had programmed diesel vehicles to evade clean air regulations. On Thursday, it said that within that figure was €7 billion for legal costs, which includes proceedings in other countries, like France or South Korea. | The German carmaker said last week that it had set aside €16.2 billion to cover costs related to its admission that it had programmed diesel vehicles to evade clean air regulations. On Thursday, it said that within that figure was €7 billion for legal costs, which includes proceedings in other countries, like France or South Korea. |
| Most of the rest of the €16.2 billion will be used to repair diesel vehicles that are polluting more than allowed, or to buy back ones that cannot be fixed. | Most of the rest of the €16.2 billion will be used to repair diesel vehicles that are polluting more than allowed, or to buy back ones that cannot be fixed. |
| The €7 billion figure disclosed on Thursday indicates that the company is confident that its legal costs in the United States will be much lower than the maximum. | |
| Volkswagen has admitted manipulating software in 11 million cars worldwide, including about 600,000 in the United States, so that emissions equipment operated at full capacity only when the vehicles were being tested. At other times, the cars polluted much more than allowed. | |
| The €7 billion would also cover compensation to the owners of Volkswagen vehicles who have filed class-action lawsuits. | The €7 billion would also cover compensation to the owners of Volkswagen vehicles who have filed class-action lawsuits. |
| On Thursday, Volkswagen also provided details on the loss it reported last week. The company said it had lost €1.5 billion worldwide during the year, compared with a profit of €11 billion in 2014. Volkswagen A.G., a subset of Volkswagen Group that includes core operations such as the Volkswagen brand but that excludes the Audi unit as well as some foreign holdings, reported a loss of €5.5 billion. | On Thursday, Volkswagen also provided details on the loss it reported last week. The company said it had lost €1.5 billion worldwide during the year, compared with a profit of €11 billion in 2014. Volkswagen A.G., a subset of Volkswagen Group that includes core operations such as the Volkswagen brand but that excludes the Audi unit as well as some foreign holdings, reported a loss of €5.5 billion. |
| Though Audi has belonged to Volkswagen since the 1960s, it continues to have a small number of outside shareholders and holds its own annual meeting. | Though Audi has belonged to Volkswagen since the 1960s, it continues to have a small number of outside shareholders and holds its own annual meeting. |
| Volkswagen, which owns brands including Porsche and Skoda as well as manufacturers of trucks and commercial vehicles, sold 10 million vehicles in 2015, down from 10.2 million in 2014. Sales rose 5.4 percent to €213 billion. | Volkswagen, which owns brands including Porsche and Skoda as well as manufacturers of trucks and commercial vehicles, sold 10 million vehicles in 2015, down from 10.2 million in 2014. Sales rose 5.4 percent to €213 billion. |
| Company executives said they still saw the United States as a growth market for Volkswagen, despite the enormous damage to the carmaker’s image. | Company executives said they still saw the United States as a growth market for Volkswagen, despite the enormous damage to the carmaker’s image. |
| “We do see a lot of potential, though of course not in the short term,” Herbert Diess, the executive in charge of Volkswagen brand cars, said during the news conference. “We are starting from zero.” | “We do see a lot of potential, though of course not in the short term,” Herbert Diess, the executive in charge of Volkswagen brand cars, said during the news conference. “We are starting from zero.” |