VW (josefkubes/Bigstock.com)

Volkswagen's UK managing director Paul Willis has refused to say if UK motorists who bought VWs with 'defeat devices' would be compensated. 1.2m Volkswagens fitted with emissions-cheating software have been sold in the UK.

Willis, who was giving evidence to MPs on the Transport Committee, also revealed there was a "risk" that the German carmaker's recall would run into 2017.

Willis said Volkswagen had an "absolute obligation to fix these cars and put them right."

However, he also said, "I think it's premature to talk about loss of value. This is a very important issue, but it's not a safety-related issue. We have to make sure we regain customers’ trust.”

11m VWs have been affected by the emissions-rigging scandal, in which engines were rigged to give false emissions readings when undergoing tests. The issue was identified by the US Environmental Protection Agency (EPA).

So far 25bn euros have been wiped off VW's share price since the scandal broke, equating to a 40 per cent plunge.

Willis stated that 400,000 cars sold in the UK would need mechanical modification. He also admitted that 1,000 cars were sold despite VW’s UK arm knowing they were fitted with 'defeat devices'.

VW “mishandled the situation, without a shadow of a doubt,” said Willis, who “apologised sincerely and unreservedly” on behalf of the Volkswagen Group.

Willis was also quizzed about who in the company knew the defeat devices were being used. The managing director replied:  "I find it absolutely implausible that senior people in the company would have known of these issues with regard to the testing regime."

However, Transport Secretary Patrick Mcloughlin said, “I think everybody finds it hard to believe it was just one or two rogue engineers."