THE BOSS of Volkswagen has come attack for failing to cover the total current cost to the taxpayer over the emission-rigging scandal while dismissing the compensation claims of over 10,000 British motorists including hundreds in Scotland.

Paul Willis, in giving evidence to the transport select committee, last week said that while paying £12.3 billion to settle claims in the US and buy back polluting cars, there was "no legal basis" for similar claims in Britain, he had "misled nobody" and that his company did not set up cars to cheat emissions regulations.

It also emerged that the the payments to cover the cost to the taxpayer of re-testing vehicles so far has not yet been fully paid with ministers seeking a further £1 million over and above the £1.1 million paid by Volkswagen.

Transport minister John Hayes told MPs that the government were engaging with VW to  cough up the further £1 million and to press for further compensation to customers who have been affected.

The Herald:

VW say it believed that the £1.1 million paid was sufficient to cover taxpayer costs.

Willis told MPs that fewer than half of the UK vehicles caught up in the Volkswagen emissions scandal had been fixed. Around 470,000 of the 1.2m vehicles fitted with software to cheat environmental tests have been dealt with, he said.

SNP MP Stewart McDonald, who is a member of the committee has now written to the Volkswagen managing director raising concerns about the compensation failure and the clearness and inconsistencies of his evidence saying the evidence session was "extremely disappointing and unacceptable".

During last week's hearing, MPs attacked VW’s UK boss for failing to give answers to straight answers, repeatedly using phrases such as “to the best of my knowledge” and “I can’t recall”.

Mr McDonald said: ‘’There are obligations that have not been met, including the payment of compensation warranty to cover the taxpayer’s costs to fix this, which appears still not to have been paid in full.

‘’The whole thing is causing frustration for the committee still trying to get to the bottom of this and of course for all the consumer and customers of the company.

‘’The motor industry – and Volkswagen in particular - have got to live up to a higher standard than this, otherwise their reputations and the reputation of their products is going to be irreparably damaged.’’ He is also concerned that the UK government appears not to have yet recieved the full report from Volkswagen over the emissions scandal.

Paul Willis, Volkswagen Group UK managing director defends a failure to provide compensation at the parliamentary committee. Source: parliamentlive.tv

Harcus Sinclair is applying for a group litigation order - which is similar to a US class action lawsuit - in the High Court later this month.

Glasgow-based Thompsons Solicitors is representing more than 250 motorists in Scotland affected by the scandal.

The legal action is aimed at securing compensation for people who own or have previously owned one of the vehicles.

In the UK around 1.2 million diesel engine cars are affected by the emissions scandal.

Of the UK vehicles affected by the crisis, there were  estimated to be 508,276 Volkswagen cars, 393,450 Audis, 131,569 Skodas, 79,838 VW commercial vehicles and 76,773 Seats.

Around 20,000 cars a week are being fixed by the company, Willis told MPs.

Mr Willis was being questioned by the transport select committee on the emissions scandal following revelations in 2015 that 11m diesel-engined VW cars worldwide failed to meet pollution controls.

Willis said there had been no change in fuel consumption and, from all the data he had seen, there had been no detrimental effect to the residual value of vehicles.

VW accepts that 8.5 million vehicles in Europe were fitted with software that could detect when they were being tested for emissions.

But it denies that the software amounts to a "defeat device" under EU law.

A Scottish Government spokesman said: “Economy Secretary Keith Brown strongly expressed his concerns about a lack of compensation for the VW customers in Scotland when he met Mr Willis last year and he underlined his commitment to getting customers the deal they deserve.  

“He asked that VW address the inconvenience that customers in rural Scotland face in getting their vehicles repaired and suggested that the company improve its communication with Scottish consumers.

“In addition, Mr Brown has written to the UK Government to seek confirmation of their plans to seek a fair settlement.

“The Department for Transport and the UK Vehicle Certification Authority are responsible for vehicle type approval and they have to establish wrongdoing or otherwise on the part of VW.  The Scottish Government is working closely with colleagues from the Department for Transport on this matter and will continue to highlight the challenges and interests of Scottish customers.”

VW says that the further £1 million being requested was to fund the work of a market surveillance unit which was to consider the compliance of all vehicles generally, including the testing of buses, trucks and vans, manufactured by other automotive companies.

"Volkswagen paid £1.1m during late 2016 and explained in November 2016 to the Department that there was no legal basis for the payment of the [further] £1m to fund the Market Surveillance Unit’s future activities, which are unrelated to the NOx emissions issue affecting Volkswagen vehicles," said a Volkswagen spokesman.

"Given that the Department did not respond to our letter other than to provide account details... and given that Mr Hayes announced to Parliament on November 17, 2016 that 'today that I have received a pledge from Volkswagen to pay £1.1 million, which taxpayers have had to spend as a result of its behaviour', as of  February 20, it was Volkswagen’s reasonable view that the Department for Transport accepted that we had repaid the full amount incurred as a result of additional testing of Volkswagen vehicles.

"We remain of that view, and that was the basis of Mr Willis’ response. "