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Spain tells VW subsidiary Seat to return clean vehicle subsidies

Volkswagen subsidiary Seat will be required to return subsidies it received from the Spanish government to produce "efficient vehicles", Spain's minister of industry, energy and tourism has said.

Jose Manuel Soria said he expects Seat to tell his ministry how many vehicles it had produced and sold both inside and outside Spain using software which cheats diesel engine emissions tests.

Mr Soria said the Volkswagen Group has given assurances that it will maintain its investments in Spain and that the emissions scandal will "not affect the activity or employment" in Spain.

Seat said in a statement on Saturday that it was appointing Luca de Meo as its new chief executive and that Volkswagen Group's recent investment of 3.3 billion euros (£2.4 billion) for research and development facilities in Spain showed its confidence.

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