UPDATE: Volkswagen US boss says 'we screwed up'

The boss of Volkswagen's US business has admitted the firm was dishonest in using software to rig emissions tests.

Michael Horn said the firm was dishonest with US regulators, adding: "We have totally screwed up."

Last Friday, the regulators said VW diesel cars had much higher emissions than tests had suggested.

French Finance Minister Michel Sapin has called for an EU inquiry, but a UK car industry spokesman said there was "no evidence" of cheating.

Mike Hawes, who is chief executive of the UK's Society of Motor Manufacturers and Traders, said the EU operated a "fundamentally different system" from the US, with tests performed in strict conditions and witnessed by a government-appointed independent approval agency.

"There is no evidence that manufacturers cheat the cycle," he said. "Vehicles are removed from the production line randomly and must be standard production models, certified by the relevant authority - the UK body being the Vehicle Certification Agency, which is responsible to the Department for Transport."

However, he also described current testing methods as "outdated" and said the car industry wanted an updated emissions test, "more representative of on-road conditions".


Fines looming

France's Mr Sapin said inquiries in Europe had to be conducted "at a European level".

"We are a European market with European rules," he told Europe 1 radio. "It is these that have to be respected. It is these that have been violated in the United States."

Elsewhere, the South Korean government said it would test up to 5,000 Jetta and Golf cars, along with Audi A3s made in 2014 and 2015.

Its investigation will be expanded to all German diesel cars if issues are found.

VW shares plunged nearly 20% on Monday after the US Environmental Protection Agency (EPA) found that software in several diesel cars could deceive regulators.

Volkswagen was ordered to recall half a million cars in the US on Friday.

In addition to paying for the recall, VW faces fines that could add up to billions of dollars. There may also be criminal charges for VW executives.

The White House in Washington also reportedly said it was "quite concerned" about VW's conduct.

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