Detroit Bureau on Twitter

Posts Tagged ‘vw lawsuit’

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.

Subscribe for Free!

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.

(more…)

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.

Subscribe Now!

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.

(more…)

Bosch Allegedly Helped VW Hide Diesel Problem

Supplier played a "crucial role" in hiding truth.

by on Aug.18, 2016

VW supplier Robert Bosch GmbH is named in a recent court filing regarding the hiding of the automaker's diesel problem.

Volkswagen AG has already either paid out or is on the hook for more than $15.3 billion in fines and penalties related to its diesel emissions scandal.

Now one of the company’s top suppliers, Robert Bosch GmbH, is facing charges that it helped cover up VW’s cheating on emission tests, according to a lawyer for U.S. owners of VW vehicles equipped with the affected diesel engines.

The Leader in Global Automotive News!

In a filing late Tuesday in U.S. District Court in San Francisco, lawyers cited confidential documents turned over by the German automaker to plaintiffs attorneys in making the new allegations against the auto supplier. (more…)

VW Delivers Profitable Surprise

Earnings “significantly higher” despite diesel scandal.

by on Jul.20, 2016

Regaining momentum: VW delivers a strong, first-half profit despite the costs of its diesel scandal.

Volkswagen AG beat its earnings forecast for the first half of 2016, delivering “significantly higher” profits even while setting aside another 2.2 billion euros, or $2.4 billion, to cover the growing cost of its diesel emissions scandal.

The news comes a day after New York and two other states filed suit against the embattled German maker, claiming senior executives had helped cover up the diesel emissions subterfuge. Last month, VW agreed to a $14.7 billion settlement covering its 2.0-liter diesel, a deal that includes $10 billion to buy back nearly 500,000 vehicles.  Most of the funds VW has so far committed to settle what it calls the “diesel issue” came out of 2015 earnings, however.

By the Numbers!

For the first half of 2016, VW said it had an operating profit of 7.5 billion euros, or $8.25 billion. That would drop to 5.3 billion euros after factoring in the latest charges for the emissions scandal, money largely related to legal costs in North America.

(more…)

New Legal Problems for VW, as NY, Other States File Suit

Three states bring new civil lawsuits over diesel emissions cheating.

by on Jul.19, 2016

The NY lawsuit claims that former VW CEO Martin Winterkorn helped cover-up the diesel cheating.

Less than a month after federal and California regulators announced a $14.7 billion settlement with Volkswagen A, New York and two other states have filed their own civil lawsuits charging the maker with covering up the fact that it had cheated on diesel emissions tests.

The new lawsuits could add hundreds of millions of dollars in additional costs to the various settlements VW has been trying to work out. And it could make it all the more difficult for the automaker to put the embarrassing issue behind itself.

Clearing the Air!

The three states contend that VW managers, including former CEO Martin Winterkorn, knowingly covered up evidence of the subterfuge. The maker last September acknowledged it had installed a so-called “defeat device” designed to illegally pass emissions tests with its 2.0-liter diesel engine. It subsequently admitted rigging a 3.0-liter turbodiesel, as well.

(more…)

VW Offering $1 Bil to US Diesel Owners

Reported plan would give $5,000 to each owner of rigged diesel cars.

by on Apr.20, 2016

VW could announce the compensation plan as early as this week.

Volkswagen will offer U.S. owners of vehicles with rigged diesel engines $5,000 apiece, according to a plan the embattled German automaker is reportedly preparing.

The deal, which is expected to cost VW just over $1 billion, could be disclosed as early as tomorrow when the carmaker is expected to appear before a federal judge in San Francisco. But VW is not believed to yet have a plant to fix those diesels, as it was supposed to put together by April 21st, according to reports in both the German newspaper Die Welt and on the Associated Press wire service.

Breaking News!

VW is facing more than 500 lawsuits filed on behalf of diesel owners in the wake of revelations it had equipped its vehicles with a so-called “defeat device,” software designed to detect when those cars were undergoing emissions tests and then modify engine operations to reduce levels of smog-causing oxides of nitrogen. Almost 550,000 of those vehicles were sold in the U.S., with 11 million sold worldwide.

(more…)

VW Hit With New Lawsuits by Investors, Former Employee

Embattled maker accused of destroying diesel data.

by on Mar.15, 2016

VW officials initially thought the scandal would have a minimal financial impact.

Already facing more than 500 lawsuits in the U.S., Volkswagen has been hit with two new legal actions that could seriously compound the problems it is facing in the wake of revelations it cheated on diesel emissions tests.

One suit, filed in Germany by major institutional investors, seeks nearly $3.6 billion due to the lost value in Volkswagen shares which have plunged by a third since the scandal broke last September. The other new legal action was initiated by a former VW employee who claims he was fired after trying to prevent the deletion of data connected to emissions test cheating.

Breaking News!

The latter suit could prove particularly problematic as Volkswagen is under criminal investigation in several countries, including both the U.S. and Germany, and was ordered to preserve potential evidence related to its admitted rigging of diesel tests.

(more…)

Dirty VW Diesels May Remain on the Road

California regulators fear no easy fix available.

by on Mar.10, 2016

Some older VW diesel models may not be completely fixed, says a California regulator.

Volkswagen has just two weeks to deliver an acceptable solution to its dirty diesel problem, according to the orders of a federal judge. But regulators in California are starting to worry that the maker might not be able to come up with a satisfactory fix short of scrapping tens of thousands of those vehicles.

As a result, a senior official with the California Air Resources Board says the organization is considering whether to let those vehicles continue to operate while falling short of both state and federal clean air mandates.

Breaking News!

“Our goal has been to fix the vehicles and return them to their certified configuration as expeditiously as possible,” CARB enforcement chief Todd Sax said during a legislative hearing in Sacramento. “Unfortunately, this may not be possible.”

(more…)

German Prosecutors Target 17 in VW Diesel Scandal

CEO foresees “substantial and painful” financial damage.

by on Mar.08, 2016

Volkswagen CEO Matthias Mueller has been trying to contain the diesel scandal.

German prosecutors have now put 17 people under investigation as they widen their probe of Volkswagen’s diesel emissions cheating scandal.

The number has grown in recent weeks from the initial six employees prosecutors say they were targeting – and now goes well beyond the “handful of engineers” VW’s senior executives have long said were behind the cheating.

Subscribe Now!

Separately, VW CEO Matthias Mueller on Tuesday said he expects the scandal to result in “substantial and painful” financial damage before it is fully resolved. The maker has already set aside more than $7 billion to cover those costs while also setting up a credit line for as much as $20 billion more.

(more…)

EPA Looking at Claims Mercedes Rigged Diesels

But no formal investigation, government says.

by on Feb.29, 2016

In 2012, Mercedes launched a U.S. S-Class diesel for the first time since 1995.

Barely a week after a Seattle law firm filed a class action lawsuit against luxury carmaker Daimler AG, the U.S. Environmental Protection Agency confirmed Monday that it is looking into claims the automaker’s diesel vehicles were illegally rigged to pass American emissions standards.

Subscribe Now!

The agency says it wants data but cautions that it has not yet opened a formal investigation. Parent of Mercedes-Benz denies allegations and says it is fully cooperating with the government.

(more…)