Volkswagen consequences hard to estimate, says Bankitalia

(AGI) Rome, Sept 29 - The Bank of Italy on Tuesday warned thatthe potential economic consequences of the Volkswagen scandalin Italy are difficult to estimate. "On top of the uncertaintypresent on global markets, we now have the added one connectedto the possible repercussions - which are difficult to quantify- of the serious Volkswagen scandal on the car sector as wellas on investor and consumer expectations," said the deputygovernor of Italy's central bank, Luigi Federico Signorini."The Bank of Italy's concerns must certainly be taken intoaccount. The case is relevant on a European

(AGI) Rome, Sept 29 - The Bank of Italy on Tuesday warned thatthe potential economic consequences of the Volkswagen scandalin Italy are difficult to estimate. "On top of the uncertaintypresent on global markets, we now have the added one connectedto the possible repercussions - which are difficult to quantify- of the serious Volkswagen scandal on the car sector as wellas on investor and consumer expectations," said the deputygovernor of Italy's central bank, Luigi Federico Signorini."The Bank of Italy's concerns must certainly be taken intoaccount. The case is relevant on a European level; justyesterday, I discussed it with my German colleague over thephone," Italy's Minister for Infrastructure and Transportation,Graziano Delrio, commented. "We're always concerned whencitizens are deceived and when fraud is committed at theexpense of the authorities. Let's hope the consequences will beminimal for Europe's industry in general," he added. In themeantime, new Volkswagen chief executive Matthias Mueller, whoreplaced Martin Winterkorn following the scandal, announcedthat the company will recall 11 million vehicles containing theemissions test cheating software. Speaking to the group'smanagers behind closed doors at the company headquarters inWolfsburg, Mueller promised an "exhaustive" plan to resolve thefraudulent software issue through technical solutions to beannounced in a few days. In other words, owners of theemissions-rigged vehicles will be informed as to how to refittheir cars according to regulations. The solution will have tobe announced by October 7 according to the deadline set by theGerman motor transport authority (KBA). Mueller said thecompany now faces an arduous journey, and expects that progresswill only be made with small steps. He also announced that theVolkswagen brand will become separate and independent in thefuture, like Audi and Porsche. "We expect Volkswagen to explainthe situation. The commission wants facts and wants to get tothe bottom of this," said Ricardo Cardoso, spokesman for EUIndustry Commissioner Elzbieta Bienkowska. Bienkowska will meetwith the CEO of the Volkswagen Passenger Cars brand, HerbertDiess, in Brussels on Tuesday evening. In light of the scandal,Japanese authorities ordered an inquiry into the nation'slargest automobile producers (Toyota, Nissan, Mazda, andMitsubishi) and on importers of European brands to verifywhether their vehicles fully comply with emissions standards.Similar measures have already been taken by other countries,including the UK, France, and South Korea. The results of theverifications will be reported next Friday said Japan'sMinister for Transport, Akihiro Ohta. (AGI). .