• Sign in to follow this  
    Followers 0

    As the Diesel Emits: Former VW CEO Was Told Of Defeat Device Weeks Before the Official Announcement


    • A new letter reveals Winterkorn knew about the existence of the defeat devices two weeks before the EPA officially announced it.

    A new report alleges that former Volkswagen CEO, Martin Winterkorn knew about the defeat devices two weeks before the official announcement from U.S. regulators.

     

    German publication Bild am Sonntag (via Reuters) got their hands on a letter sent on September 4, 2015, to Winterkorn from a manager. The letter said,

     

    "In the conversation on 03.09.2015 with the regulator CARB (California Air Resources Board), the defeat device was admitted."

     

    Volkswagen's U.S. CEO Michael Horn told a House of Representatives hearing in October that the company came clean about the defeat device on September 3rd.

     

    Now this letter could have some serious ramifications for Volkswagen. Shareholders who are planning to sue the German automaker for compensation for the plunge in its share price could use the letter in court, saying the company should have revealed to the public about the defeat devices when they admitted to it.

     

    Volkswagen declined to comment on the report.

     

    Source: Bild via Reuters

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    There are no comments to display.



    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. Cory Wolfe
      Cory Wolfe
      (28 years old)
  • Similar Content

    • By William Maley
      American criminal lawyers are in demand at Volkswagen. Bloomberg has learned from sources that various executives at the company are hiring lawyers as the Department of Justice begins sending out officials to Germany for meetings to gather evidence for possible criminal charges.
      Volkswagen has already agreed to a $16 billion settlement over the diesel emission scandal. But the Department of Justice is continuing their investigation into whether various Volkswagen executives knew about the cheating software installed on over 10 million diesel vehicles around the world. As we reported back in September, a Volkswagen engineer has pled guilty for being involved in the scandal. 
      Volkswagen has long maintained that none of its executives knew about the software and that it was a rogue group of engineers that went forward with this decision. But as we have been reporting for the past year, various documents and emails that have been leaked out put serious doubts into this claim.
      It is unknown if this investigation involves former Volkswagen CEO Martin Winterkorn who stepped down shortly after the scandal broke. 
      If the Department of Justice was to bring Volkswagen executives to court, they could be facing some roadblocks. Germany's constitution doesn’t allow citizens to be extradited outside the European Union. A source tells Bloomberg the Department of Justice is looking into possible ways to bring them to the U.S.
      Source: Bloomberg

      View full article
    • By William Maley
      American criminal lawyers are in demand at Volkswagen. Bloomberg has learned from sources that various executives at the company are hiring lawyers as the Department of Justice begins sending out officials to Germany for meetings to gather evidence for possible criminal charges.
      Volkswagen has already agreed to a $16 billion settlement over the diesel emission scandal. But the Department of Justice is continuing their investigation into whether various Volkswagen executives knew about the cheating software installed on over 10 million diesel vehicles around the world. As we reported back in September, a Volkswagen engineer has pled guilty for being involved in the scandal. 
      Volkswagen has long maintained that none of its executives knew about the software and that it was a rogue group of engineers that went forward with this decision. But as we have been reporting for the past year, various documents and emails that have been leaked out put serious doubts into this claim.
      It is unknown if this investigation involves former Volkswagen CEO Martin Winterkorn who stepped down shortly after the scandal broke. 
      If the Department of Justice was to bring Volkswagen executives to court, they could be facing some roadblocks. Germany's constitution doesn’t allow citizens to be extradited outside the European Union. A source tells Bloomberg the Department of Justice is looking into possible ways to bring them to the U.S.
      Source: Bloomberg
    • By William Maley
      The first person has been charged in the U.S.' Volkswagen diesel emission probe. Today at the U.S. Federal Court in Detroit, James Robert Liang, leader of diesel competence for Volkswagen from 2008 until June of this year entered a plea of guilty to conspiracy to defraud the U.S. government, commit wire fraud, and violate the Clean Air Act. 
      According to grand jury indictment filed back in June and unsealed today,  “Liang and his co-conspirators, including current and former employees, and others, agreed to defraud the U.S. and VW customers, and violate the Clean Air Act, by misleading the U.S. and VW customers about whether VW diesel motors complied with U.S. emissions standards,” prosecutors wrote.
      Documents showed Liang was on the team that developed the diesel engine at the center of this scandal, the EA 189 2.0L four-cylinder back in 2006. The team realized that the engine wouldn't meet the strict U.S. standards on nitrogen oxide emissions while also attracting “sufficient customer demand.” Thus the decision was made to develop and install the 'defeat device' software on the EA 189 to pass emission tests. This engine would be installed on various Volkswagen vehicles starting in 2009.
      In 2014, Liang's team would update the software to help cut down on warranty claims. Engineers believed the reason for the increase in claims was due to the vehicle operating with the defeat device on for too long. Around this time, U.S. regulators would begin asking Volkswagen questions about the discrepancies between the amount of emissions being emitted during lab tests and in real-world driving. Various Volkswagen employees either lied when talking with regulators. 
      “I know VW did not disclose the defeat device to U.S. regulators in order to sell the cars in the U.S. That’s what makes me guilty,” said Liang to the court.
      Liang faces up to five years in jail and a fine of up to $250,000 or twice the gross gain or loss. In a plea agreement signed on August 31st, prosecutors say in exchange for his agreement to cooperate with the probe, the U.S. government agrees not to use any new information about Liang’s own criminal conduct during the sentencing hearing expected to take place on January 11th. Liang's cooperation could help out in the investigation and shine a light on more people involved.
      When asked for comment, Volkswagen spokeswoman Jeannine Ginivan declined.
      Source: Automotive News (Subscription Required), Bloomberg, The Detroit News

      View full article
  • Recent Status Updates

  • Who's Online (See full list)