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Senate Finance enters Volkswagen fray

The Senate Finance Committee opened a new front in investigations into Volkswagen on Tuesday, questioning whether the automaker's rigging of emission control systems cost the Treasury millions in wrongly issued subsidies.

Finance Chairman Orrin HatchOrrin Grant HatchMellman: What happened after Ginsburg? Bottom line Bottom line MORE (R-Utah) and the panel's top Democrat, Sen. Ron WydenRonald (Ron) Lee WydenTwo more parting shots from Trump aimed squarely at disabled workers On The Money: Push for student loan forgiveness puts Biden in tight spot | Trump is wild card as shutdown fears grow | Mnuchin asks Fed to return 5 billion in unspent COVID emergency funds Grassley, Wyden criticize Treasury guidance concerning PPP loans MORE (Ore.), noted that Volkswagen told the IRS that diesel cars thought to have had their emissions systems manipulated were eligible for a tax credit for fuel efficient vehicles.

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The two senators suggested that owners of certain 2009 and 2010 Volkswagen models received well over $50 million in subsidies from a $1,300 per vehicle credit established roughly a decade ago. 

Almost a half million vehicles in all were rigged to wrongly pass emissions tests through "defeat devices" that Volkswagen has admitted to installing.

"This activity raises questions of whether Volkswagen made false representations to the U.S. government in its certification for federal tax subsidies," Hatch and Wyden wrote.

Hatch and Wyden pressed Volkswagen for a wide range of information by the end of the month, including any discussions between the automaker and the Treasury Department over the vehicles and documents asserting to certify the vehicles' eligibility for the tax credit.