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Volkswagen has let down UK consumers, but so have this country's authorities

MPs have described the car maker's behaviour as "deeply unfair". Authorities need to heed their call to take action on behalf of UK customers

James Moore
Friday 15 July 2016 15:10 BST
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Dark times for Volkswagen's UK customers
Dark times for Volkswagen's UK customers (Getty)

Drive a Volkswagen? You’ve got every reason to feel very angry.

Your fellow VW drivers in the US are being compensated after the car maker admitted that nearly half a million vehicles were fitted with “defeat devices” to get them through - read cheat - emissions tests. However, a $15bn (£11.25bn) settlement was reached with federal authorities there so owners will be compensated. VW will also either buy back or repair their vehicles.

However, if you’re among the 1.2m UK motorists similarly affected you can get your vehicle repaired and that’s it.

VW is disputing whether the software that caused all the problems in the US actually constitutes a “defeat device” under European rules, so UK motorists are out of luck.

“Deeply unfair,” is how the Transport Select Committee described VW’s stance towards its customers here in a sharply critical report that attacked the company’s evidence as “not credible” while casting doubt on the sincerity of its apology.

Now there’s an important point to be made here. The US is generally seen as the place for capitalism that is red in tooth and claw. But despite the ease with which businesses over there can buy politicians and the succour they are given, the legal system and its regulators have a habit of coming down hard when they mess up.

Just look at the fines meted out to miscreant banks, which dwarfed the penalties imposed on this side of the Atlantic. VW, faced with attacks on multiple fronts over there, and aware of the danger it faced, quickly caved in. That huge settlement was the result.

Now plenty of options have been discussed for the taking action against VW by UK authorities such as the Competition & Markets Authority or even the Serious Fraud Office. But that’s about as far as it has got. They’ve preferred to sit on their hands.

The Committee would like the Department for Transport to prosecute and accused it of being slow to take action. The DfT says it has been jolly busy doing things and would like to see a European investigation. Of course, we’re leaving Europe. So that excuse that won’t be available for much longer.

It’s worth noting that aside from being unfair, Volkswagen’s attitude is bad for business. If I owned a VW and was being told tough luck, you’re not American so we’re not going to look after you properly, I’d be inclined to vote with my feet.

But if VW won’t see sense, then the UK authorities need to open its eyes instead of trying to pass the buck and while hoping the problem will go away.

Theresa May talked about a Britain that works for everyone when she became Prime Minister. She even proposed some quite radical reforms to the way businesses in this country are run.

If she means it this is the sort of thing that needs to change. I’m not altogether confident that it will.

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