Volkswagen to make amends following emissions scandal

NEW YORK (Reuters) - Volkswagen AG's U.S. head on Monday said he was confident the German automaker would restore customer confidence after it 'totally screwed up” by rigging emissions tests of diesel-powered vehicles in the United States.

Michael Horn vowed to make amends at a lavish event in New York to promote the 2016 Passat where the carmaker doled out German beer, pretzels and 'cheddary ale fondue” to dealers and the media, before a performance of rock star Lenny Kravitz.

The U.S. Environmental Protection Agency said Friday the automaker used software that deceived regulators measuring toxic emissions, meaning it could face penalties of up to $18 billion.

The world's largest carmaker by sales highlighted the new Passat's sensor technology to assist drivers while parking and to avoid accidents while driving. Horn's presentation did not promote the environmental efficiency of the Passat's 'clean diesel” model.

'As a dealer, I had to back out of a couple deals the same day,” said one guest who declined to be named, not wishing to be quoted about the controversy. 'That hurt me because we found out in real-time. What are you going to do?”

He added, 'I don't think this will affect us long term. It's a hell-of-a performing car.”

Volkswagen shares plunged nearly 20 percent on Monday after the carmaker admitted it had rigged emissions tests.

German government officials have expressed concern that the scandal could damage the reputation of its car industry, and the U.S. Department of Justice began a criminal probe of the effort to game the emissions tests, according to press reports.