Government looking into VW emissions scandal implications, says economy minister

Budapest, September 28 (MTI) – The Hungarian government has started looking into potential implications of Volkswagen’s emission scandal for the Hungarian car market, Economy Minister Mihaly Varga said on Monday.

Varga told reporters at the signing of a loan contract with the European Investment Bank that the effects of the scandal on the Hungarian car market are yet to be felt but warned that a drop in car sales could have a 0.3-0.6 percent impact on the economy.

The minister said the Hungarian government would wait to see the scandal’s effects on the international car market and how any changes would affect the Volkswagen Group.

“We are waiting for the results of the ongoing investigation and to find out what the fine will be and how it affects the VW Group,” Varga said.

“So far we have seen an emotional impact: companies involved in diesel technology have gotten scared and adopted a wait-and-see attitude,” he added.

Varga said he expects the scandal to impact Hungary, where the automotive industry accounts for 20-22 percent of the total industrial output, and more than 10 percent of the country’s exports.

He said the scandal has vindicated the government’s decision to diversify the economy and place greater emphasis on sectors such as the pharmaceutical industry, IT or the manufacturing sector.

Source: http://mtva.hu/hu/hungary-matters