Government to gauge impact of VW emissions scandal on economy

Automotive

Pixabay

The impact of the Volkswagen emissions testing scandal on the Hungarian economy remains to be seen, but the government is investigating the matter and initiated discussions last week , National Economy Minister Mihály Varga told journalists yesterday.

"For the time being, we are waiting because we donʼt know the result of the probe, the size of compensation and the scale of the impact on the VW group," Varga said. "Till now, weʼve seen the emotional impact: Companies involved in the manufacture of diesel engines are alarmed, theyʼre waiting, they have to wait, too, to find out the results of the probe in the coming weeks," he added.

Volkswagen came under scrutiny after admitting that it installed software in diesel cars to cheat on emissions tests, a move which could affect sales. Varga said that a drop in European car sales could have a 0.3-0.6% impact on the performance of the Hungarian economy. German carmaker Audi, a member of the Volkswagen group, turned out about two million vehicle gas and diesel engines at its plant in Győr, northwestern Hungary, last year.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.