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Posts Tagged ‘vw diesel scandal’

As VW Engineer Sentenced to 40 Months Former CEO Faces New Allegations

Winterkorn said to have been told about diesel cheating earlier than first claimed.

by on Aug.25, 2017

VW diesel engineer James Liang was the first to plead guilty in the VW diesel scam case.

A one-time Volkswagen engineer who admitted playing a key role in the German automaker’s diesel emissions scandal has been sentenced by a Detroit federal judge to 40 months in prison and faces a $200,000 fine.

That was significantly more of a penalty than federal prosecutors originally had sought for James Liang, the first VW employee to plead guilty in a case that has now cost the company nearly $30 billion and led to the recall or buyback of millions of diesel-powered vehicles sold in the U.S., Europe and other parts of the world.

The Last Word!

Separately, a former Volkswagen quality control engineer has told German prosecutors that he advised then-CEO Martin Winterkorn about the diesel rigging scandal on July 27, 2015. That was a month ahead of when Winterkorn and other members of the VW board had previously said they learned about the problem, and nearly two months before the scam was revealed by the U.S. Environmental Protection Agency. (more…)

VW Exec Pleads Guilty in Diesel Scandal

Schmidt becomes second VW employee to plead guilty.

by on Aug.04, 2017

Former VW manager Oliver Schmidt pleaded guilty in U.S. District Court in Detroit.

As expected, Volkswagen executive Oliver Schmidt pleaded guilty for his role in the German automaker’s diesel emissions scandal. The plea came today in U.S. District Court in Detroit.

He is the second VW employee to plead guilty to charges related to the diesel scam, 62-year-old James Robert Liang the first to do so last September.

Stay in the Loop!

Schmidt is expected to face up to seven years in prison and a fine of between $40,000 and $400,000 after admitting to conspiring to mislead U.S regulators and violating clean air laws, as part of the plea agreement, according to Reuters. (more…)

Volkswagen Penalized Again for Dieselgate Scandal

Maker not eligible for European Investment Bank loans.

by on Aug.03, 2017

VW's diesel scandal has had a secondary impact on the maker: no more low-cost R&D loans from the European Investment Bank.

For now, Volkswagen is no longer eligible for low-cost financing to help finance research and development from the European Investment Bank

The bank’s decision, which is part of the fallout from the diesel scandal that engulfed the company two years ago, comes as carmakers are scrambling to find money in the hunt for new technology.

News Now!

The hold on new loans came after the European Anti-Fraud Office, known as OLAF, concluded that Volkswagen misled authorities about how it used $472 million earmarked, at VW’s request, to help finance the development of cleaner more efficient engines.  (more…)

Audi Slashing $12b in Costs to Cover Electrification Goal

Luxury marque needs to offset cost of diesel emissions scandal.

by on Jul.31, 2017

Audi showed off its e-Tron Sportback Concept at this year's Shanghai Motor Show.

As it shifts away from its long dependence on diesel powertrains, Audi is looking to rapidly ramp up its electrification program, but the luxury arm of Volkswagen Group will have to slash spending to cover the costs of its new technology.

Audi intends to cut costs by 10 billion euros, or $12 billion, by 2022 to support its aggressive shift to electrification, according to a report by Germany’s Handelsblatt business publication.

News You Can Trust!

That money will help it bring to market five all-new battery-electric vehicles, or BEVs, as well as a range of plug-in hybrids and conventional hybrids, according to the report.

(more…)

Mercedes-Benz Parent Daimler Recalling 3m Diesels to Fix Emissions Systems

Porsche CEO says maker may abandon diesel technology.

by on Jul.18, 2017

Mercedes decided not to offer diesel models, like this ML320 BlueTec, in the U.S. for 2017.

Daimler AG plans to spend about $255 million to recall and repair 3 million diesel vehicles that are at the center of a probe looking at whether the automaker rigged them to illegally pass emissions tests.

The automaker has been accused of using a so-called “defeat device,” an approach similar to that used by Volkswagen AG to rig 11 million diesel vehicles sold around the world. The Daimler recall, for now, is limited to models sold in Europe. But an investigation is underway in the U.S., as well, the Environmental Protection Agency stating it is “continuing to evaluate light-duty vehicles from a number of manufacturers.”

Clearing the Air!

Separately, the CEO of Porsche AG said the automaker is considering whether to halt the sale of diesels all together. Porsche shared one of the two rigged diesels produced by its parent Volkswagen in a number of different models.

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Daimler Accused of Selling More Than 1M Cars With Illegal Defeat Devices

Company's stock takes heavy hit as a result.

by on Jul.13, 2017

Daimler AG, Mercedes-Benz parent, stands accused of selling more than 1 million diesel-powered cars equipped with a cheating device.

Mercedes-Benz parent Daimler AG appears to be the latest automaker to face accusations of rigging vehicles with “defeat device” technology in order to illegally pass emissions tests, according to a major German newspaper.

The report, by the Sueddeutsche Zeitung, sent shares of the automakers skidding in European trading on Thursday, though several industry analysts now say they don’t expect the report – if accurate to trigger the sort of massive blow to Daimler that was felt by Volkswagen AG. VW has so far spent about $30 billion as a result of its own diesel emissions scandal, while also having to repair or buy back as many as 11 million vehicles.

Product News!

According to the report, vehicles with excess emissions were sold in Europe and the United States between 2008 and 2016. Notably, Mercedes chose to withdraw its diesel models from the U.S. market this year rather than trying to get their emissions certified. (more…)

U.S., German Prosecutors File Charges in Audi Diesel Emissions Probe

Official charged in the U.S., arrest made in Germany.

by on Jul.07, 2017

A line-up of Audi TDI models. The automaker currently has pulled all off the U.S. market.

The investigation into diesel emissions cheating by Volkswagen’s luxury arm Audi has taken a new turn with charges filed on both sides of the Atlantic, and an arrest made in Germany.

Sixty-year-old Giovanni Pamio becomes the eight person charged by the U.S. Justice Department for participating in an extensive scheme to rig diesel engines used by various diesel brands. That scam is expected to cot Volkswagen at least $30 billion in fines, fees and a broad buyback of vehicles that cannot be brought up to legal standards in the U.S. and a number of other markets.

Breaking News!

While prosecutors in Germany and the States initially focused their efforts on the Volkswagen brand, they have begun expanding the investigation to look at the role other VW marques played in the scandal, notably Audi. Prosecutors in Munich, for one thing, conducted a number of raids on Audi and VW offices in March, as well as targeting the offices of a law firm representing the luxury brand. And they have now arrested an as yet-unnamed Audi employee.

(more…)

Settle or Sue: U.S. Ready to Take on FCA Over Diesel Rigging Allegations

Automaker accused of using “defeat device” to meet emissions mandates.

by on May.18, 2017

The Ram 1500 turbodiesel has won a number of awards - but the EPA claims it was rigged to pass emissions tests.

The U.S. Justice Department has reportedly given Fiat Chrysler Automobiles an ultimatum: either settle allegations it rigged its diesel models to illegally pass U.S. emissions tests or be hit with a lawsuit.

With the Euro-American automaker so far fiercely challenging those claims by the government, a civil suit could be filed as early as this week, according to a report by the Reuters news service.

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Breaking News!

The automaker says it sees the threat of litigation as “counterproductive,” adding that it “will defend itself vigorously” in court, if necessary. But whether it will now back down is uncertain considering FCA management will need to weigh the potential damages – both in terms of legal costs and possible fines and penalties, as well as the hit to its image the automaker could face.

(more…)

VW CEO Mueller Target of Criminal Probe

Despite concerns about role in diesel scandal, Audi CEO Stadler gets new contract.

by on May.17, 2017

VW CEO Matthias Mueller his now at the center of an investigation by German prosecutors over the ongoing diesel emissions scandal.

Already focused on a number of former Volkswagen employees, German prosecutors today said they are also investigating the possible role CEO Matthias Mueller may have played in the attempt to cover up VW’s diesel emissions scandal.

Specifically, Mueller and at least two others may have failed to properly informed regulators and investors soon enough once they learned that Volkswagen engineers had developed a so-called defeat device in an attempt to fool diesel vehicle emissions tests.

Global Auto News!

Even while the probe expands, however, news reports from Germany indicate Rupert Stadler, the CEO of VW’s Audi luxury brand, will have his contract extended five years. Though well-rated for his handling of Audi overall, Stadler has come under fire for his own, alleged role in the diesel scandal. (more…)

VW’s Mueller Under Investigation Over Diesel Scandal

Move comes from his time as head of Porsche.

by on May.10, 2017

VW CEO Matthias Mueller is under investigation over his role in VW's diesel scandal while he led Porsche.

Volkswagen’s woes related to its diesel scandal continue as Volkswagen Group CEO Matthias Mueller is now under investigation in Germany.

Prosecutors are investigating the possibility that he did not fully disclose details of the company’s emissions scandal to investors, according to multiple reports.

Global Auto News!

Until now, Mueller managed to remain above the diesel investigatory fray. Other VW executives, most notably former CEO Martin Winterkorn, who denied any involvement, but resigned anyway, have been caught up in the churn of queries over the 2015 emissions scandal. (more…)