State insists on tests for VW’s diesel cars
VWSA claims locally produced vehicles are not affected
THE GOVERNMENT probe into whether Volkswagen’s (VW) local diesel vehicles were affected by the rigging of emission tests is going ahead, despite the company indicating that none of the local vehicles were affected.
Temba Kaula, the acting general manager of the automotive division at the National Regulator for Compulsory Specifications ( NRCS), confirmed yesterday that its investigation was still proceeding.
Kaula said the NRCS had not yet finalised how it would conduct the investigation, but they were still looking at completing the investigation within two to three months.
“The NRCS does not have emission test facilities but the SABS (SA Bureau of Standards) has a test facility in East London.
“So far the NRCS has not finalised if the testing will take place at the East London facility,” he said.
Kaula told Business Report previously that a vehicle recall of the affected vehicles for correction was one of the measures the NRCS could take if VW vehicles in South Africa were non-compliant with the country’s vehicle emission standards.
Media coverage
VW Group South Africa communications general manager Matt Gennrich said earlier this month that there had been extensive international media coverage relating to irregularities in nitrogen oxide emission values measured during dynamometer testing regarding the emission standard Euro 5 of VW diesel vehicles fitted with the type EA189 Euro 5 engines.
Gennrich said the compliance standard in South Africa was EU 2 and all VW Group diesel vehicles of the type EA189 retailed in South Africa, which included VW passenger, Audi, light and medium commercial vehicles, complied with this standard for nitrogen oxide emissions.
‘There is, therefore, no action required on either the part of the customer or our dealers,’ he said.
“We want to further confirm that the bench mode in the software does not affect negatively the CO2 values.
“Our vehicles accordingly comply with the published CO2 values. Furthermore they are technically safe and roadworthy,” Gennrich said.
“We would like to apologise to our customers for any un- certainty that may have been created over this issue and want to assure our valued customers that their vehicles meet all the legal requirements in terms of which the NRCS approved the sale for use in South Africa.
“There is, therefore, no action required on either the part of the customer or our dealers,” he said.
Emissions tax
If this is confirmed by the NRCS investigation, it will mean Volkswagen SA does not have a tax liability to the SA Revenue Service (Sars) for any possible under declaration of CO2 emissions and, therefore, any underpayment in emissions tax.
Luther Lebelo, a spokesperson for Sars, last month declined to confirm or deny it would be investigating this issue because of the confidentiality provisions in the Tax Administration Act. However, Lebelo confirmed Sars would investigate any prima facie case of possible tax avoidance or non-compliance brought before it, either through the risk engine or fraud line.
The vehicle emissions scandal erupted after the US Environmental Protection Agency reported that VW had used software that deceived regulators measuring toxic emissions and could face penalties of up to $18 billion (R236.53bn).
It affects about 11 million cars worldwide and led to VW losing about a quarter of its market value, the resignation of its then chief executive Martin Winterkorn and the car maker setting aside e6.5bn (R96.9bn) to help cover the costs of the scandal.