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6.7 Billion Euro Provisions Enough to Cover Repairs: VW CEO

Volkswagen does not expect additional costs from fixing U.S. cars capable of cheating diesel emissions tests, Chief Executive Matthias Mueller said.

Published: 12th January 2016 09:48 AM  |   Last Updated: 12th January 2016 09:48 AM   |  A+A-

DETROIT: Volkswagen does not expect additional costs from fixing U.S. cars capable of cheating diesel emissions tests, Chief Executive Matthias Mueller said on Monday.

"We have prepared 6.7 billion euros ($7.28 billion) for the repair process of all the cars globally. We suppose that that should be enough," Mueller said in an interview with Reuters TV at the Detroit auto show.

Mueller had said on Sunday that VW would propose to the U.S. Environmental Protection Agency (EPA) a new catalytic converter system that VW says could be fitted to about 430,000 rigged U.S. cars.

Mueller is due to meet EPA administrator Gina McCarthy in Washington on Wednesday, where he plans to make the proposal which he said includes technical solutions, a "theoretical" offer to buy back cars and a time schedule.

"We are looking forward to the talks on Wednesday with great confidence," he said, citing "great progress" achieved in discussions with the EPA in past weeks. "We hope that our offer on the technical solutions and timing proposals will be accepted in foreseeable time."

Christopher Grundler, director of the EPA's Office of Transportation and Air Quality, said he didn't know if a VW proposed catalytic converter will fix 430,000 diesel vehicles.

"We'd have to look at it," Grundler said in a interview on the sidelines of the auto show. "Given the circumstances and the past history, we're not going to approve anything until it's thoroughly tested and we're convinced that it addressed the non-compliance and its good for owners."

Separately, Mueller expressed optimism about VW's sales outlook this year after Europe's biggest automotive group suffered the first drop in deliveries at its namesake brand as well as group level in more than a decade last year.

Asked whether he was bracing for another drop in sales, the CEO said: "We have some difficult political situations all over the world, so we will see what will happen. We have a very attractive product portfolio all over the brands, so we are confident we will be successful in 2016."

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