"Senate Panel Probing VW's Use of Tax Credits"

"WASHINGTON — The Senate Finance Committee opened a probe Tuesday into Volkswagen's use of a federal tax credit intended for fuel-efficient cars as the company's emissions-rigging scandal widened.

Sens. Orrin Hatch, R-Utah, and Ron Wyden, D-Ore. said in a letter to Volkswagen that more than $50 million in tax subsidies may have gone to VW owners under false pretenses. Hatch chairs the Finance panel and Wyden is its senior Democrat.

Volkswagen's use of 'defeat devices' in diesel passenger cars raises the question of whether the automaker 'made false representations to the U.S. government' in certifying that the VW Jetta and other models met emissions standards needed to claim the $1,300-per-veheicle tax credit, the senators said. The Associated Press obtained a copy of the letter, which was sent to VW late Tuesday."

Matthew Daly reports for the Associated Press October 6, 2015.