Norway's Wealth Fund Suing VW Over Emissions

Norway's sovereign wealth fund is to join German legal action to sue Volkswagen (LSE: 0P6N.L - news) after it provided incorrect emissions data.

The £595bn fund invests the money made from the state oil company and is a shareholder in the carmaker.

Norges Bank Investment Management, which manages the fund, says that after several meetings with VW representatives it sees little evidence of reform.

Fund spokeswoman Marthe Skaar said: "It (Other OTC: ITGL - news) is the board's responsibility to ensure accurate and timely information is disclosed to the shareholders.

"We have been advised by our lawyers that the company's conduct gives rise to legal claims under German law.

"As an investor it's our responsibility to safeguard the fund's holding in Volkswagen.

"We've had several meetings with company representatives since the incorrect disclosure was known.

"At this time we see little evidence of governance reform.

"We expect VW to conform to acceptable corporate governance standards, including an adequate provision of fully independent directors, and commitment to equitable treatment of shareholders."

The fund confirmed it would join the class-action case after Volkswagen admitted it had used secret car software to cheat exhaust emissions tests last year.

Norges said it lost more than £400m in the second quarter of 2015.

VW bought back or fixed about half a million of its diesel cars from the US government last month and set up compensation funds, spending just under £7bn.

The Norwegian wealth fund recently called for US oil firms Exxon Mobil (Swiss: XOM.SW - news) and Chevron (Euronext: CHTEX.NX - news) to speak out on climate change risks (Other OTC: UBGXF - news) .