• Sign in to follow this  
    Followers 0

    As the Diesel Emits: German Regulators Deem Volkswagen Emission Software As A Defeat Device


    • If you thought the Volkswagen scandal couldn't get any worse, think again.

    Volkswagen's diesel emission scandal went deeper this week as the German Federal Motor Transport Authority (known as the KBA) announced on Tuesday that the software Volkswagen uses on their diesel vehicles was deemed illegal. This decision opens up the possibility of lawsuits and penalties against the company, but the extent of this is unknown at this time.

     

    As the New York Times states 'it was a turbulent day for the company.' Aside from the KBA announcing the software Volkswagen used was deemed illegal, the company announced monthly sales in the U.S. dropped 25 percent. Volkswagen also announced that 50 employees have stepped forward and provided information about the software and who knew what as part of an amnesty program that ended in November.

     

    Then came Standard & Poor's announcement that it had downgraded Volkswagen's debt from A- to a BBB+, three notches away from junk status. The rating agency said the downgrade “reflects our view that VW’s manipulation of engine emissions exposes the group to material, wide-ranging adverse credit impacts.”

     

    Source: New York Times

    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

  • 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
    • 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
    • By William Maley
      Volkswagen and U.S. Government were going to have a hearing at U.S. Federal Court in San Francisco today for an update on the 3.0L TDI talks. But yesterday, U.S. District Judge Charles Breyer has pushed it back to next month.
      Reuters got their hands on a court order in which Breyer says "negotiations are continuing between the German automaker, regulators, and lawyers representing owners," and a delay "may produce a resolution of the outstanding issues."
      As we reported earlier this month, Volkswagen and regulators have possibly reached a deal for the 3.0L TDI with 60,000 of the affected vehicles being fixed, and the other 20,000 being bought back. There are still a number of issues that need to be worked out, hence the delay.
      Source: Reuters

      View full article
  • Recent Status Updates

  • Who's Online (See full list)

    There are no registered users currently online