CEO implores Obama to show mercy to VW
WOLFSBURG, Germany — The chief executive of Volkswagen said Thursday that he personally apologized to President Barack Obama this week for cheating on vehicle emissions tests, while making what amounted to a plea for mercy as the German carmaker negotiates penalties with U.S. officials.
Volkswagen is in talks with U.S. authorities about the fines it must pay for programming engines to cheat on emissions tests. The company said Thursday that it had set aside $7.9 billion for legal costs worldwide, indicating that it expected fines in the United States to be much lower than some analysts have estimated.
Matthias Mueller, the chief executive of Volkswagen, had what he described as a two-minute conversation with Obama during the president’s visit this week to Hanover, not far from Volks-wagen headquarters in Wolfsburg.
The encounter took place on Sunday at a dinner hosted by
Chancellor Angela Merkel for Obama and representatives of German industry.
“I used the opportunity to personally apologize to him for our behavior,” Mueller 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.”
Mueller’s mention of Volkswagen workers and their families can be seen as a plea for U.S. officials to not punish those who had nothing to do with any wrongdoing. Lawyers in the case expect the En- vironmental 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 SUV, as well as an extensive dealer network in the country.
Mueller said Thursday that 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.
Volkswagen has admitted to 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 $7.9 billion would also cover compensation to the owners of Volkswagen vehicles who have filed class-action lawsuits.