Jump to content
Sign in to follow this  
William Maley

VW News: As the Diesel Emits: Volkswagen Agrees To Pay $4.3 Billion To Settle Criminal Case, Six Employees Indicted

Recommended Posts


Volkswagen will be cutting another big check. Today, the company announced that it had reached a settlement with Department of Justice over the criminal case on the diesel emission scandal. Volkswagen will plead guilty to three criminal felony charges and will pay $4.3 billion - $2.8 billion for the fine and $1.5 billion to settle civil cases. The settlement also requires an independent monitor to watch over the company for the next years. 

Volkswagen's board still needs to approve this settlement, but the company says the approval could happen today or tomorrow. If they waited, the parties would have to do it all over again with new people coming as part of President-elect Trump's team.

“Today’s actions reflect the Justice Department’s steadfast commitment to defending consumers, protecting our environment and our financial system and holding individuals and companies accountable for corporate wrongdoing. In the days ahead, we will continue to examine Volkswagen’s attempts to mislead consumers and deceive the government. And we will continue to pursue the individuals responsible for orchestrating this damaging conspiracy,” said Attorney General Loretta E. Lynch in a statement.

In addition, six Volkswagen executives and employees have been charged with their involvement in the scandal. They include, 

  • Richard Dorenkamp - In charge of Volkswagen’s Engine Development After-Treatment Department from 2003 to 2013. This department is where the cheat was developed.
  • Bernd Gottweis - Volkswagen's supervisor responsible for Quality Management and Product Safety between 2007 to October 2014.
  • Jens Hadler - Head of powertrain development from 2007 to 2011.
  • Heinz-Jakob Neusser - Head of powertrain development from 2011 to 2013, suspended by Volkswagen back in 2015.
  • Jürgen Peter - Worked in Volkswagen's Quality Management and Product Safety Group from 1990 to now. For a few months in 2015, he was a liaison for various regulatory agencies.
  • Oliver Schmidt - Volkswagen's liaison with U.S. environmental regulators. He was arrested on Sunday in Miami as he was returning to Germany.

Source: Department of Justice, Bloomberg, Reuters
Press Release is on Page 2


Volkswagen AG Agrees to Plead Guilty and Pay $4.3 Billion in Criminal and Civil Penalties; Six Volkswagen Executives and Employees are Indicted in Connection with Conspiracy to Cheat U.S. Emissions Tests

  • VW to Pay $2.8 Billion Criminal Fine in Guilty Plea and $1.5 Billion Settlement of Civil Environmental, Customs and Financial Violations; Monitor to Be Appointed to Oversee the Parent Company

Volkswagen AG (VW) has agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s long-running scheme to sell approximately 590,000 diesel vehicles in the U.S. by using a defeat device to cheat on emissions tests mandated by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), and lying and obstructing justice to further the scheme, the Justice Department announced today.

In separate civil resolutions of environmental, customs and financial claims, VW has agreed to pay $1.5 billion. This includes EPA’s claim for civil penalties against VW in connection with VW’s importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The Criminal Case:

VW is charged with and has agreed to plead guilty to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. VW is also charged with obstruction of justice for destroying documents related to the scheme, and with a separate crime of importing these cars into the U.S. by means of false statements about the vehicles’ compliance with emissions limits. Under the terms of the plea agreement, which must be accepted by the court, VW will plead guilty to all these crimes, will be on probation for three years, will be under an independent corporate compliance monitor who will oversee the company for at least three years, and agrees to fully cooperate in the Justice Department’s ongoing investigation and prosecution of individuals responsible for these crimes.

In addition, a federal grand jury in the Eastern District of Michigan returned an indictment today charging six VW executives and employees for their roles in the nearly 10-year conspiracy. Heinz-Jakob Neusser, 56; Jens Hadler, 50; Richard Dorenkamp, 68; Bernd Gottweis, 69; Oliver Schmidt, 48; and Jürgen Peter, 59, all of Germany, are charged with one count of conspiracy to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The indictment also charges Dorenkamp, Neusser, Schmidt and Peter with Clean Air Act violations and charges Neusser, Gottweis, Schmidt and Peter with wire fraud counts. This case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.

Schmidt was arrested on Jan. 7, 2017, in Miami during a visit to the United States and appeared in federal court there on Monday. The other defendants are believed to presently reside in Germany.

Today’s announcement was made by Attorney General Loretta E. Lynch, EPA Administrator Gina McCarthy and Assistant Administrator Cynthia Giles, Deputy Attorney General Sally Q. Yates, FBI Deputy Director Andrew McCabe, Acting Deputy Secretary Russell C. Deyo for the Department of Homeland Security, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.

“Volkswagen’s attempts to dodge emissions standards and import falsely certified vehicles into the country represent an egregious violation of our nation’s environmental, consumer protection and financial laws,” said Attorney General Lynch. “Today’s actions reflect the Justice Department’s steadfast commitment to defending consumers, protecting our environment and our financial system and holding individuals and companies accountable for corporate wrongdoing. In the days ahead, we will continue to examine Volkswagen’s attempts to mislead consumers and deceive the government. And we will continue to pursue the individuals responsible for orchestrating this damaging conspiracy.”

“When Volkswagen broke the law, EPA stepped in to hold them accountable and address the pollution they caused,” said EPA Administrator McCarthy. “EPA’s fundamental and indispensable role becomes all too clear when companies evade laws that protect our health. The American public depends on a strong and active EPA to deliver clean air protections, and that is exactly what we have done.”

“This wasn’t simply the action of some faceless, multinational corporation,” said Deputy Attorney General Yates. “This conspiracy involved flesh-and-blood individuals who used their positions within Volkswagen to deceive both regulators and consumers. From the start of this investigation, we’ve been committed to ensuring that those responsible for criminal activity are held accountable. We’ve followed the evidence—from the showroom to the boardroom—and it brought us to the people whose indictments we’re announcing today.”

“Americans expect corporations to operate honestly and provide accurate information,” said Deputy Director McCabe. “Volkswagen’s data deception defrauded the U.S. government, violated the Clean Air Act and eroded consumer trust. This case sends a clear message to corporations, no matter how big or small, that if you lie and disregard rules that protect consumers and the environment, you will be caught and held accountable.”

“Blatant violations of U.S. customs and environmental laws will not be tolerated, and this case reinforces that,” said Acting Deputy Secretary Deyo. “These actions put our economy, consumers and citizens at risk, and the Department of Homeland Security and U.S. Customs and Border Protection will continue to take every step necessary to protect the American people.”

According to the indictment, the individuals occupied the following positions within the company:

  1. Heinz-Jakob Neusser: from July 2013 until September 2015, Neusser worked for VW as head of Development for VW Brand and was also on the management board for VW Brand. From October 2011 until July 2013, Neusser served as the head of Engine Development for VW.
  2. Jens Hadler: from May 2007 until March 2011, Hadler worked for VW as head of Engine Development for VW.
  3. Richard Dorenkamp: from 2003 until December 2013, Dorenkamp worked for VW as the head of VW’s Engine Development After-Treatment Department in Wolfsburg, Germany. From 2006 until 2013, Dorenkamp led a team of engineers that developed the first diesel engine that was designed to meet the new, tougher emissions standards in the United States.
  4. Bernd Gottweis: from 2007 until October 2014, Gottweis worked for VW as a supervisor with responsibility for Quality Management and Product Safety.
  5. Oliver Schmidt: from 2012 through February 2015, Schmidt was the General Manager in charge of the Environment and Engineering Office, located in Auburn Hills, Michigan. From February 2015 through September 2015, Schmidt returned to VW headquarters to work directly for Neusser, including on emissions issues.
  6. Jürgen Peter: Peter worked in the VW Quality Management and Product Safety Group from 1990 until the present. From March 2015 until July 2015, Peter was one of the VW liaisons between the regulatory agencies and VW.

According to the charging documents and statement of facts filed with the court, in 2006, VW engineers began to design a new diesel engine to meet stricter U.S. emissions standards that would take effect by model year 2007. This new engine would be the cornerstone of a new project to sell diesel vehicles in the United States that would be marketed to buyers as “clean diesel,” a project that was an important strategic goal for VW’s management. When the co-conspirators realized that they could not design a diesel engine that would both meet the stricter NOx emissions standards and attract sufficient customer demand in the U.S. market, they decided they would use a software function to cheat standard U.S. emissions tests.

VW engineers working under Dorenkamp and Hadler designed and implemented a software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or it was being driven on the road under normal driving conditions. The software accomplished this by recognizing the standard published drive cycles. Based on these inputs, if the vehicle’s software detected that it was being tested, the vehicle performed in one mode, which satisfied U.S. NOx emissions standards. If the software detected that the vehicle was not being tested, it operated in a different mode, in which the vehicle’s emissions control systems were reduced substantially, causing the vehicle to emit NOx up to 40 times higher than U.S. standards.

Disagreements over the direction of the project were articulated at a meeting over which Hadler presided, and which Dorenkamp attended. Hadler authorized Dorenkamp to proceed with the project knowing that only the use of the defeat device software would enable VW diesel vehicles to pass U.S. emissions tests. Starting with the first model year 2009 of VW’s new “clean diesel” engine through model year 2016, Dorenkamp, Neusser, Hadler and their co-conspirators installed, or caused to be installed, the defeat device software into the vehicles imported and sold in the United States. In order to sell their “clean diesel” vehicles in the United States, the co-conspirators lied to the EPA about the existence of their test-cheating software, hiding it from the EPA, CARB, VW customers and the U.S. public. Dorenkamp, Neusser, Hadler, Gottweis, Schmidt, Peter and their co-conspirators then marketed, and caused to be marketed, VW diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly.

Around 2012, hardware failures developed in certain of the diesel vehicles. VW engineers believed the increased stress on the exhaust system from being driven in the “dyno mode” could be the cause of the hardware failures. In July 2012, VW engineers met with Neusser and Gottweis to explain what they believed to be the cause of the hardware failures and explained the defeat device. Gottweis and Neusser each encouraged further concealment of the software. In 2014, the co-conspirators perfected their cheating software by starting the vehicle in “street mode,” and, when the defeat device realized the vehicle was being tested, switching to the “dyno mode.” To increase the ability of the vehicle’s software to recognize that it was being tested on the dynamometer, the VW engineers activated a “steering wheel angle recognition feature.” With these alterations, it was believed the stress on the exhaust system would be reduced because the engine would not be operating for as long in “dyno mode.” The new function was installed in existing vehicles through software updates. The defendants and other co-conspirators falsely represented, and caused to be represented, to U.S. regulators, U.S. customers and others that the software update was intended to improve durability and emissions issues in the vehicles when, in fact, they knew it was used to more quickly deactivate emission control systems when the vehicle was not undergoing emissions tests.

After years of VW selling their “clean diesel” vehicles in the United States that had the cheating software, in March 2014, West Virginia University’s Center for Alternative Fuels, Engines and Emissions published the results of a study commissioned by the International Council on Clean Transportation (ICCT). The ICCT study identified substantial discrepancies in the NOx emissions from certain VW vehicles when tested on the road compared to when these vehicles were undergoing EPA and CARB standard drive cycle tests on a dynamometer. Rather than tell the truth, VW employees, including Neusser, Gottweis, Schmidt and Peter, pursued a strategy to disclose as little as possible – to continue to hide the existence of the software from U.S. regulators, U.S. customers and the U.S. public.

Following the ICCT study, CARB, in coordination with the EPA, attempted to work with VW to determine the cause for the higher NOx emissions in VW diesel vehicles when being driven on the road as opposed to on the dynamometer undergoing standard emissions test cycles. To do this, CARB, in coordination with the EPA, repeatedly asked VW questions that became increasingly more specific and detailed, and tested the vehicles themselves. In implementing their strategy of disclosing as little as possible, Neusser, Gottweis, Schmidt, Peter and their co-conspirators provided EPA and CARB with testing results, data, presentations and statements in an attempt to make it appear that there were innocent mechanical and technological problems to blame, while secretly knowing that the primary reason for the discrepancy was their cheating software that was installed in every VW diesel vehicle sold in the United States. The co-conspirators continued this back-and-forth with the EPA and CARB for over 18 months, obstructing the regulators’ attempts to uncover the truth.

The charges in the indictment are merely accusations and each defendant is presumed innocent unless and until proven guilty.

The case was investigated by the FBI and EPA-CID. The prosecution and corporate investigation are being handled by Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters of the Criminal Division’s Fraud Section; Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section; and from the U.S. Attorney’s Office for the Eastern District of Michigan, Criminal Division Chief Mark Chutkow and White Collar Crime Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

The Civil Resolutions:

The first civil settlement resolves EPA’s remaining claims against six VW-related entities (including Volkswagen AG, Audi AG and Porsche AG) currently pending in the multidistrict litigation before U.S. District Judge Charles R. Breyer of the Northern District of California. EPA’s complaint alleges that VW violated the Clean Air Act by selling approximately 590,000 cars that the United States alleges are equipped with defeat devices and, during normal operation and use, emit pollution significantly in excess of EPA-compliant levels. VW has agreed to pay $1.45 billion to resolve EPA’s civil penalty claims, as well as the civil penalty claim of CBP described below. The consent decree resolving the Clean Air Act claims also resolves EPA’s remaining claim in the complaint for injunctive relief to prevent future violations by requiring VW to undertake a number of corporate governance reforms and perform in-use testing of its vehicles using a portable emissions measurement system of the same type used to catch VW’s cheating in the first place. Today’s settlement is in addition the historic $14.7 billion settlement that addressed the 2.0 liter cars on the road and associated environmental harm announced in June 2016, and $1 billion settlement that addressed the 3.0 liter cars on the road and associated environmental harm announced in December 2016, which together included nearly $3 billion for environmental mitigation projects.

A second civil settlement resolves civil fraud claims asserted by U.S. Customs and Border Protection (CBP) against VW entities. VW entities violated criminal and civil customs laws by knowingly submitting to CBP material false statements and omitting material information, over multiple years, with the intent of deceiving or misleading CBP concerning the admissibility of vehicles into the United States. CBP enforces U.S. customs laws as well as numerous laws on behalf of other governmental agencies related to health, safety, and border security. At the time of importation, VW falsely represented to CBP that each of the nearly 590,000 imported vehicles complied with all applicable environmental laws, knowing those representations to be untrue. CBP’s relationship with the importing community is one based on trust, and this resolution demonstrates that CBP will not tolerate abrogation of importer responsibilities and schemes to defraud the revenue of the United States. The $1.45 billion paid under the EPA settlement also resolves CBP’s claims.

In a third settlement, VW has agreed to pay $50 million in civil penalties for alleged violations of FIRREA. The Justice Department alleged that a VW entity supported the sales and leasing of certain VW vehicles, including the defeat-device vehicles, by offering competitive financing terms by purchasing from dealers certain automobile retail installment contracts (i.e. loans) and leases entered into by customers that purchased or leased certain VW vehicles, as well as dealer floorplan loans. These financing arrangements were primarily collateralized by the vehicles underlying the loan and lease transactions. The department alleged that certain of these loans, leases and floorplan financings were pooled together to create asset-backed securities and that federally insured financial institutions purchased certain notes in these securities. Today’s FIRREA resolution is part of the department’s ongoing efforts to deter wrongdoers from using the financial markets to facilitate their fraud and to ensure the stability of the nation’s financial system.

Except where based on admissions by VW, the claims resolved by the civil agreements are allegations only.

The civil settlements were handled by the Environmental and Natural Resources Division’s Environmental Enforcement Section, with assistance from the EPA; the Civil Division’s Commercial Litigation Branch; and CBP.


View full article

Share this post


Link to post
Share on other sites

Ouch, the start of draining their bank account. Wonder how the US will spend this money? Social overkill waste or actually paying some debt?

No matter what, VW will be hurting for a long time.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  



  • Similar Content

    • By William Maley
      Scott Keogh, Audi of America's president will soon have a new job come November 1st. He will become CEO of Volkswagen Group's North American operations, taking over Hinrich Woebcken who held the position since April 2016. This is a big deal since Keogh will be the first American to hold the top position for Volkswagen's North America branch in 25 years.
      Keogh has an impressive track record at Audi when he joined in 2006 as their chief marking officer. He would play a key role in boosting the awareness of the brand. In 2012, he was named president and would preside over one of the longest sales streaks that continues to this day.
      His new assignment is going to be tough. As Automotive News points out, Volkswagen dealers have the " lowest profit margins of any brand in the U.S." A number of Volkswagen dealers also struggle with customer service. Keogh has worked on both at Audi, helping dealers improve profits and boosting customer satisfaction - vaulting itself into the top three. 
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition. After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America,“ said Dr. Herbert Diess, CEO of Volkswagen AG in a statement.
      Woebcken will be sticking around Volkswagen as an adviser. Keogh's replacement at Audi will be Mark Del Rosso, currently the head of Bentley's Aamerican division.
      Source: Volkswagen, Automotive News (Subscription Required)


      SCOTT KEOGH NAMED HEAD OF VOLKSWAGEN GROUP OF AMERICA
      Hinrich J. Woebcken remains available to the company as an adviser Mark Del Rosso, head of Bentley Motors Inc., Americas, named president of Audi of America HERNDON, Va. (October 10, 2018) – Scott Keogh, head of Audi of America, was named president and CEO of Volkswagen Group of America as well as head of the Volkswagen brand for the North American region.
      Keogh, who joined Audi in 2006, will succeed Hinrich J. Woebcken, who led the successful transformation of Volkswagen in North America. Woebcken will remain with the company as an adviser. Keogh’s successor is Mark Del Rosso, president and CEO of Bentley Motors, Inc., Americas, and former chief operating officer of Audi of America. Keogh and Woebcken's new roles are effective Nov. 1. Del Rosso joins Audi Dec. 1. A replacement for Del Rosso will be named later.
      Keogh, 49, joined Audi as chief marketing officer, where he led the revival of the Audi brand with innovative marketing tactics that lead to record awareness and brand strength. In 2012, he was appointed president, building on the momentum to help reach record customer satisfaction levels and double sales from 2010 to 2015.
      Woebcken, 58, an industrial engineer by training, was named CEO of the newly created North America region of the Volkswagen brand in January 2016 and then president and CEO of Volkswagen Group of America. He began his career with Krauss-Maffei in 1985. After holding positions in sales and marketing, he became managing director responsible for sales, marketing and after-sales with Dürr AG in 1997, before joining BMW as head of technical purchasing in 2004. Before joining VW, he was BMW's senior vice president, driving dynamics, and a member of the board of management at Knorr-Bremse AG. He will continue to be available to the company in the North American region as senior executive strategy adviser.
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition," said Dr. Herbert Diess, CEO of Volkswagen AG. "After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America.“
      Del Rosso, 54, is a graduate of the University of Southern California and an experienced marketing and sales executive with extensive expertise in the premium sector. He started his career with Toyota Motor Sales in 1991, holding various senior corporate and regional positions throughout the U.S. for Lexus and Toyota. In 2008, he became executive vice president, COO of Audi of America and was appointed president and CEO of Bentley Motors, Inc., Americas in 2017.

      View full article
    • By William Maley
      Scott Keogh, Audi of America's president will soon have a new job come November 1st. He will become CEO of Volkswagen Group's North American operations, taking over Hinrich Woebcken who held the position since April 2016. This is a big deal since Keogh will be the first American to hold the top position for Volkswagen's North America branch in 25 years.
      Keogh has an impressive track record at Audi when he joined in 2006 as their chief marking officer. He would play a key role in boosting the awareness of the brand. In 2012, he was named president and would preside over one of the longest sales streaks that continues to this day.
      His new assignment is going to be tough. As Automotive News points out, Volkswagen dealers have the " lowest profit margins of any brand in the U.S." A number of Volkswagen dealers also struggle with customer service. Keogh has worked on both at Audi, helping dealers improve profits and boosting customer satisfaction - vaulting itself into the top three. 
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition. After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America,“ said Dr. Herbert Diess, CEO of Volkswagen AG in a statement.
      Woebcken will be sticking around Volkswagen as an adviser. Keogh's replacement at Audi will be Mark Del Rosso, currently the head of Bentley's Aamerican division.
      Source: Volkswagen, Automotive News (Subscription Required)


      SCOTT KEOGH NAMED HEAD OF VOLKSWAGEN GROUP OF AMERICA
      Hinrich J. Woebcken remains available to the company as an adviser Mark Del Rosso, head of Bentley Motors Inc., Americas, named president of Audi of America HERNDON, Va. (October 10, 2018) – Scott Keogh, head of Audi of America, was named president and CEO of Volkswagen Group of America as well as head of the Volkswagen brand for the North American region.
      Keogh, who joined Audi in 2006, will succeed Hinrich J. Woebcken, who led the successful transformation of Volkswagen in North America. Woebcken will remain with the company as an adviser. Keogh’s successor is Mark Del Rosso, president and CEO of Bentley Motors, Inc., Americas, and former chief operating officer of Audi of America. Keogh and Woebcken's new roles are effective Nov. 1. Del Rosso joins Audi Dec. 1. A replacement for Del Rosso will be named later.
      Keogh, 49, joined Audi as chief marketing officer, where he led the revival of the Audi brand with innovative marketing tactics that lead to record awareness and brand strength. In 2012, he was appointed president, building on the momentum to help reach record customer satisfaction levels and double sales from 2010 to 2015.
      Woebcken, 58, an industrial engineer by training, was named CEO of the newly created North America region of the Volkswagen brand in January 2016 and then president and CEO of Volkswagen Group of America. He began his career with Krauss-Maffei in 1985. After holding positions in sales and marketing, he became managing director responsible for sales, marketing and after-sales with Dürr AG in 1997, before joining BMW as head of technical purchasing in 2004. Before joining VW, he was BMW's senior vice president, driving dynamics, and a member of the board of management at Knorr-Bremse AG. He will continue to be available to the company in the North American region as senior executive strategy adviser.
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition," said Dr. Herbert Diess, CEO of Volkswagen AG. "After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America.“
      Del Rosso, 54, is a graduate of the University of Southern California and an experienced marketing and sales executive with extensive expertise in the premium sector. He started his career with Toyota Motor Sales in 1991, holding various senior corporate and regional positions throughout the U.S. for Lexus and Toyota. In 2008, he became executive vice president, COO of Audi of America and was appointed president and CEO of Bentley Motors, Inc., Americas in 2017.
    • By William Maley
      Volkswagen was originally planning to roll out the Arteon in the U.S. towards the end of this year. But complications stemming from the European Union's Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP) has caused the German automaker to push back the launch to early 2019.
      Automotive News reports that the first hint of the delay came when Volkswagen cancelled a media drive event in California that was scheduled for next month. A spokesman told the outlet the delay comes down to delays in the certification process caused by a backlog in meeting [new] WLTP worldwide emissions testing."
      Beginning this month, all new vehicles sold in the European Union must meet the new WLTP emissions parameters. But long delays in testing have meant that automakers only started receiving certification recently. This in turn has meant automakers are under immense pressure to keep an adequate supply of WLTP-compliant vehicles to dealers. The Arteon is one of those models and Volkswagen has made the decision to prioritize production for Europe for the time being.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Volkswagen was originally planning to roll out the Arteon in the U.S. towards the end of this year. But complications stemming from the European Union's Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP) has caused the German automaker to push back the launch to early 2019.
      Automotive News reports that the first hint of the delay came when Volkswagen cancelled a media drive event in California that was scheduled for next month. A spokesman told the outlet the delay comes down to delays in the certification process caused by a backlog in meeting [new] WLTP worldwide emissions testing."
      Beginning this month, all new vehicles sold in the European Union must meet the new WLTP emissions parameters. But long delays in testing have meant that automakers only started receiving certification recently. This in turn has meant automakers are under immense pressure to keep an adequate supply of WLTP-compliant vehicles to dealers. The Arteon is one of those models and Volkswagen has made the decision to prioritize production for Europe for the time being.
      Source: Automotive News (Subscription Required)
    • By William Maley
      About a year ago, European antitrust regulators became very suspicious that BMW, Daimler, and Volkswagen were involved in a longstanding automotive cartel that colluded on restricting certain emissions control devices for the market. Raids were carried out at various facilities, but nothing came out. That changed yesterday as the European Commission has opened a formal investigation.
      "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars," said Commissioner Margrethe Vestager, head of competition policy for the European Commission in a statement.
      "These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers."
      The technologies in question include selective catalytic reduction systems that reduce the amount of nitrogen oxides from diesel cars, and "Otto" particulate filters that capture particulate emissions from gas vehicles.
      The commission also revealed the group discussed common requirements for car parts and testing procedures, though there isn't evidence to say if they were illegal or not. It is also mentioned that there was no evidence that the automakers coordinated in the use of defeat devices.
      Daimler and Volkswagen told Reuters they were cooperating with the commission. BMW said it would continue to support the authority of the commission.
      Source: Reuters, European Commission


      Antitrust: Commission opens formal investigation into possible collusion between BMW, Daimler and the VW group on clean emission technology
      Brussels, 18 September 2018
      The European Commission has opened an in-depth investigation to assess whether BMW, Daimler and VW (Volkswagen, Audi, Porsche) colluded, in breach of EU antitrust rules, to avoid competition on the development and roll-out of technology to clean the emissions of petrol and diesel passenger cars.
      Commissioner Margrethe Vestager, in charge of competition policy, said: "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars. These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers."
      In October 2017, the Commission carried out inspections at the premises of BMW, Daimler, Volkswagen and Audi in Germany as part of its initial inquiries into possible collusion between car manufacturers on the technological development of passenger cars.
      The Commission's in-depth investigation focusses on information indicating that BMW, Daimler, Volkswagen, Audi and Porsche, also called the "circle of five", participated in meetings where they discussed inter alia the development and deployment of technologies to limit harmful car exhaust emissions.
      In particular, the Commission is assessing whether the companies colluded to limit the development and roll-out of certain emissions control systems for cars sold in the European Economic Area, namely:
      selective catalytic reduction ('SCR') systems to reduce harmful nitrogen oxides emissions from passenger cars with diesel engines; and 'Otto' particulate filters ('OPF') to reduce harmful particulate matter emissions from passenger cars with petrol engines. The in-depth investigation will aim to establish whether the conduct of BMW, Daimler and VW may have violated EU antitrust rules that prohibit cartels and restrictive business practices, including agreements to limit or control technical development (Article 101 of the Treaty on the Functioning of the European Union).
      At this stage, the Commission has no indications that the parties coordinated with each other in relation to the use of illegal defeat devices to cheat regulatory testing.
      The Commission will carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.
      Other topics discussed by the companies
      The Commission's formal investigation concerns solely the emissions control systems identified above. These were only some of the issues discussed by the "circle of five". Numerous other technical topics were discussed, including common quality requirements for car parts, common quality testing procedures or exchanges concerning their own car models that were already on the market. The "circle of five" also had discussions on the maximum speed at which the roofs of convertible cars can open or close, and at which the cruise control will work. Cooperation also extended to the area of crash tests and crash test dummies where the car companies pooled technical expertise and development efforts to improve testing procedures for car safety.

      At this stage the Commission does not have sufficient indications that these discussions between the "circle of five" constituted anti-competitive conduct that would merit further investigation. EU antitrust rules leave room for technical cooperation aimed at improving product quality. The Commission's in-depth investigation in this case concerns specific cooperation that is suspected to have aimed at limiting the technical development or preventing the roll-out of technical devices.

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×