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Posts Tagged ‘vw diesel’

VW’s Ex-CEO Winterkorn Under the Microscope

Denies hiding diesel scandal from investors.

by on Jan.19, 2017

Former VW CEO Martin Winterkorn remains a target of investigators in Germany.

Former Volkswagen CEO Martin Winterkorn testified that he had no advance warning of the company’s diesel emissions cheating despite some concerns he intentionally misled VW investors before the scandal broke wide open in September 2015.

Winterkorn has been under a cloud of suspicion in recent months as prosecutors in both Germany and the U.S. have dug ever deeper into VW’s rigging of diesel emissions tests. As part of a $4.3 billion settlement between the company and the U.S. Justice Department announced last week, six VW employees were indicted for their alleged role in coming up with the so-called “defeat devices” used in the automaker’s 2.0- and 3.0-liter engines. Now, the focus turns to whether top management tried to conceal what they knew.

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“As CEO I took political responsibility,” the 69-year-old Winterkorn said during a German parliamentary inquiry on Thursday, adding that, “this step was the most difficult of my life.”

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VW Agrees to $4.3 Bil Criminal Settlement in VW Diesel Scandal

No “rogues”; “very significant people in company” were involved.

by on Jan.11, 2017

"They obfuscated, they denied and they ultimately lied," said Attorney General Loretta Lynch.

The U.S. Justice Department and several other federal agencies have announced a $4.3 billion settlement of the criminal investigation of Volkswagen AG’s diesel emissions rigging, regulators also revealing that six executives have been indicted on charges ranging from wire fraud to conspiracy to defraud the government.

Justice officials said the investigation will continue into actions that might have been taken by other officials. The list of those involved in the scandal, they noted during a Wednesday afternoon news conference in Washington, D.C., include some “very significant people in the company,” one executive managing more than 10,000 other employees. The automaker had previously tried to downplay the situation, insisting on several occasions that only a “handful” of “rogue” workers had been involved.

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“It is now clear Volkswagen’s top officials knew about these activities and kept the American government and the American people in the dark,” said Andrew McCabe, deputy director of the FBI, “and they did it for years.”

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VW Strikes Deal on Bigger Diesel Engines – Will Mean Mix of Buybacks and Fixes

"We are committed to earning back trust," says VW's US chief.

by on Dec.20, 2016

Audi used the 3.0-liter turbodiesel in a number of models before the emissions scandal broke.

Volkswagen has reached a settlement with federal and state regulators involving about 80,000 diesel vehicles not covered by the $15 billion settlement the automaker agreed to last June.

While some details have yet to be released, the tentative deal that has been presented to U.S. District Judge Charles Breyer in San Francisco authorizes both buybacks and fixes for Volkswagen, Porsche and Audi models equipped with the German maker’s 3.0-liter turbodiesel. The earlier agreement covered 475,000 VW and Audi vehicles fitted with a 2.0-liter diesel engine.

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“The agreement announced by the Court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc. “

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EU Sues 4 Member States Over VW Diesel Scam

Union regulators want penalties for emissions cheating.

by on Dec.08, 2016

The European Union demands four member states - including Germany - impose fines on VW.

Volkswagen may be facing significantly new penalties for cheating on diesel emissions – at least if European Union regulators have their way.

The EU has launched legal proceedings against four member states – Britain, Germany, Luxembourg and Spain – demanding that they impose fines against VW for using illegal “defeat device” software to rig diesel emissions tests. The European Commission also claims those four countries “broke the law” by refusing to provide EU regulators “all the technical information” they have gathered on VW’s scam.

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If the Brussels-based EU is successful, it could lead to hefty new penalties against the German automaker which has already shelled out billions of dollars in fines and settlements linked to the diesel scandal. That includes a $14.7 billion deal it reached last spring with U.S. and California regulators, most of that going to buy back vehicles equipped with a flawed 2.0-liter turbodiesel.

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Is VW Putting the Nail in the Coffin for U.S. Diesels?

Embattled automaker won’t offer new oil-burners in the future.

by on Nov.23, 2016

VW will no longer sell diesels in the U.S., even if it can resolve its TDI emissions problem.

They once accounted for nearly a quarter of the German automaker’s U.S. sales, but going forward, Volkswagen will no longer offer diesels in the U.S. market, according to brand chief Herbert Diess.

As the largest retailer of diesel-powered passenger vehicles in the U.S., VW helped spur a surge of offerings by competitors such as General Motors and Nissan, as well as Mercedes-Benz and BMW. But with diesel sales already on the decline, some analysts question whether VW’s decision will spur other automakers to abandon their “oil-burners,” as well.

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“At the moment we assume that we will offer no new diesel vehicles in the U.S,” Diess told the German  business daily Handelsblatt in an interview following the Tuesday announcement of the maker’s global turnaround plan.

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VW Cutting 30,000 Jobs Worldwide in Wake of Diesel Emissions Scandal

Move is part of broader changes to shift product plans, improve efficiency.

by on Nov.18, 2016

VW CEO Matthias Mueller wants to double the carmaker's profit margin and shift its product mix.

Volkswagen AG will eliminate about 30,000 jobs, the majority of them in Germany, as it struggles to cut costs in the wake of a diesel emissions scandal that some analysts estimate will eventually cost it as much as $30 billion or more.

The cuts are expected to save the embattled automaker about 3.7 billion Euros, or nearly $4 billion annually, according to VW CEO Matthias Mueller. However, the move is meant to do more than simply help cover the costs of the diesel scandal.

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The job cuts are part of “the biggest modernization program in the history of the group’s core brand,” Mueller told reporters during a news conference at VW’s corporate headquarters in Wolfsburg, Germany.  “The VW brand needs a real shake-up,” he added, “and that is exactly what the future pact has turned out to be.”

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VW Chairman Now Under Investigation in Diesel Scandal

Board looks for ways to slash costs to cover billions burns by crisis.

by on Nov.07, 2016

VW Chairman Hans Dieter Poetsch is the latest exec caught up in the diesel emissions scandal.

The trans-Atlantic criminal probe into Volkswagen’s diesel rigging has now targeted the German automaker’s top executive, Chairman Hans Dieter Poetsch, the company confirmed over the weekend.

He joins a number of other senior executives – including ousted CEO Martin Winterkorn – who are facing investigation in the U.S. and Germany for their possible roles in VW’s effort to cheat on diesel emissions tests. Prior to his appointment in September 2015, Poetsch served at VW’s chief financial officer.

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The investigation of Poetsch and two other board members by prosecutors in the city of Braunschweig could complicate efforts by VW to move past the scandal. As TheDetroitBureau.com reported last week, the automaker is moving closer to a settlement covering the second of two diesel engines Volkswagen has admitted rigging. Meanwhile, hoping to offset the roughly $20 billion it has already committed to pay out due to the scandal, VW board members on Friday laid out extensive cost-cutting plans.

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Volkswagen Delivers Solid Profit Despite Diesel Scandal

U.S. buyback program set to get underway.

by on Oct.27, 2016

The Porsche Macan helped drive big profits for the brand - and for parent Volkswagen AG.

As it begins to see its massive diesel scandal fade into the rearview mirror, Volkswagen AG reported Thursday a big jump in third-quarter earnings.

The German maker had a net, after-tax profit of 2.34 billion euros, or $2.55 billion. By comparison, VW went 6.7 billion euros into the red a year ago as it set aside funds to cover fines and legal costs triggered by the revelation it had rigged emissions tests on its 2.0- and 3.0-liter diesel engines.

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On Tuesday, a judge in San Francisco gave final approval to a nearly $15 settlement with U.S. and California regulators covering the smaller of the two powertrains. That includes up to $10 billion to buy back the 475,000 Audi and Volkswagen brand vehicles sold in the U.S. using that engine. VW says buybacks are likely to begin by mid-November, though the maker still hopes to come up with a technical fix for at least some of those vehicles.

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VW Facing $9 Bil in Investor Claims Over Diesel Scandal

Shareholders lost billions once scam was revealed.

by on Sep.21, 2016

VW's costs continue to grow as a result of its diesel emissions scandal.

After already agreeing to claims and penalties worth nearly $20 billion, Volkswagen now faces more than 1,400 investor lawsuits that could cost it another $9 billion.

A flood of lawsuits have landed on the doorstep of the regional court in Braunschweig, Germany as a one-year deadline for filing claims approaches. It was on September 18, 2015 that the U.S. Environmental Protection Agency accused the automaker of rigging 475,000 vehicles equipped with a 2.0-liter turbodiesel to pass American emissions tests.

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The automaker quickly acknowledged the subterfuge – which involved a total of 11 million vehicles sold worldwide – and also admitted using a so-called “defeat device” on a higher-end 3.0-liter diesel sold by the Audi and Porsche brands, as well as through VW.

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VW Diesel Scandal Takes Down Audi Exec, Spreads to Supplier Bosch

Audi’s top engineer suspended.

by on Sep.19, 2016

Stefan Knirsch is the latest executive to the step down as a result of the ongoing scandal.

The head of R&D for German luxury car brand Audi is the latest to fall as the investigation into parent Volkswagen AG’s diesel emissions scandal moves forward.

An outside investigation commissioned by VW found that Stefan Knirsch, who also served as an Audi board member, knew about efforts to rig diesel engines with a so-called “defeat device,” and then lied about the subterfuge under oath. His suspension, first reported by German newspaper Bild am Sonntag, comes about a week after a U.S.-based Volkswagen engineer became the first company official to plead guilty as part of an expanding investigation by the Justice Department.

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Separately, Justice investigators have begun probing the role of some Volkswagen suppliers, notably including German partsmaker Bosch, to see if they also participated in – or were at least aware of – the emissions test-rigging efforts. Bosch, is high on that list, according to a report by the Bloomberg News Service, as one of the suppliers of emissions technology, including software.

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