Karel Williams professor of Political Economy at Alliance Manchester Business School’s featured on BBC Radio 5 Live’s Money show on Friday 2 October to discuss further developments regarding the Volkswagen emissions scandal.
The programme focused on Volkswagen assuring owners of the 1.2 million vehicles affected by the ‘Defeat Device’ installed in Volkswagen vehicles that they will not have to pay an increased amount of road tax. The announcement follows revelations that the effected cars omit nitrogen oxide and also release a higher than previously thought amount of CO2.
Professor Karel Williams discussed the new tests which will be carried out on diesel cars by the Vehicle Certification Agency. Whilst Professor Williams believed the results of the official tests to be fairly straightforward, he highlighted how there are many questions left unanswered. Professor Williams emphasised that Volkswagen still have not explained how their software has managed to cheat the Euro Five regulations, nor have they revealed how their revised software will effect emissions, driveability or miles per gallon.
Professor Williams explored the consequences, hypothetically, if the government were to increase road tax on the faulty vehicles, it would add to Volkswagen’s mounting lawsuits; It would also increase pressure on Volkswagen’s already challenging position. If Volkswagen have cheated on their software, they are liable for misrepresentation on the vehicles sold but if their advanced software affects drivability, then they are equally liable.