Merkel Says VW Scandal Won't Harm Reputation of German Industry

  • Chancellor presses Volkswagen to clear up scandal quickly
  • We're still a good place for business, German leader says

Could the Emissions Scandal Threaten VW's Existence?

German Chancellor Angela Merkel expressed confidence that Volkswagen AG’s cheating on diesel emissions won’t harm the reputation of German industry.

While VW needs to clear up the matter quickly, “I believe that the reputation of German industry, the trust in Germany as a business location, hasn’t been so shaken that we won’t continue to be seen as a good business location,” Merkel said in a radio interview with Deutschlandfunk posted Sunday on the broadcaster’s website.

The chancellor was asked about fallout from VW’s disclosures before starting an official visit to India on Monday that will include meetings with local business leaders. Merkel has mostly remained silent about Volkswagen since revelations in September that the carmaker installed software on millions of diesel vehicles to cheat on emission tests.

“This is a watershed event that isn’t good,” Merkel told the radio station. “I hope that VW quickly provides the necessary transparency and clears things up.”