At some point, a scandal grows so big that investigations begin to overlap. When the scope widens even more, investigators suddenly begin investigating each other.
That’s the current situation in the Fatherland, where American law firm Jones Day recently had its offices raided at the request of German authorities in hot pursuit of executive skulduggery. Jones Day, of course, is the internal investigator hired by VW to probe the shady dealings that led to the diesel emissions scandal.
What started with unusual emissions readings at a West Virginia university now feels a lot like The Departed. (Read More…)
Suspecting that a Volkswagen executive might fly the coop if released on bond while awaiting trial, a U.S. District Court judge slammed the cell door shut until early next year.
Oliver Schmidt, who was arrested early this year during a stopover in Miami, is currently cooling his heels in a Detroit jail after being slapped with conspiracy and fraud charges relating to the diesel emissions scandal. With a potential jail sentence of 169 years looming over his head, even $1.6 million ponied up by family and friends wasn’t enough to secure his release. (Read More…)
The Volkswagen diesel emissions saga has reached a logical legal conclusion. The automaker entered a guilty plea in a Detroit federal courtroom this morning, admitting to a vast, 10-year conspiracy to fool environmental regulators through the use of emissions-cheating defeat devices.
As penance, Volkswagen AG must now pay $4.3 billion in criminal fines and civil penalties. That sum can now be added to the multi-billion U.S. buyback of hundreds of thousands of 2.0- and 3.0-liter diesel vehicles manufactured since 2009. While the penalties would be a bitter pill for any automaker to swallow, it’s a fraction of the fine allowed under federal guidelines.
Had the court pursued it, it might have sparked a brand fire sale down at Volkswagen Group. (Read More…)
Based in Germany and nabbed by federal agents in Florida, Volkswagen’s one-time top emissions compliance manager for the U.S. made an appearance in a federal courtroom in Detroit today.
Indicted, along with five others, on charges of conspiring to defraud the U.S. and violating the Clean Air Act, Oliver Schmidt isn’t about to face down hard time without a fight. The executive pleaded not guilty to the charges, reports The Detroit News. (Read More…)
There’s no end to the layers of intrigue swirling around the upper echelons of Audi.
Last week saw four engineers who worked on the company’s emissions-rigged diesel engines fired, with one of them, former engine development chief Ulrich Weiss, claiming in court that CEO Rupert Stadler was privy to the deception.
Audi fired back with a lawsuit threat against one or more individuals for “baseless accusations” and the revealing of internal documents. Now, the German publication Bild has released information on a potentially damning document that was reportedly locked away in Weiss’s safe since 2015 for exactly this purpose.
Weiss pulled out the document in a German labor court Tuesday to prove he’s the “pawn” his lawyer claims. (Read More…)
It wasn’t exactly the Great Train Robbery, but it was daring and ballsy nonetheless. And quite expensive for the victim — in this case, quintessential British automaker Jaguar Land Rover.
The company has egg on its face and no shortage of missing engines after thieves made off with a parked trailer full of high-end motors from the Solihull, UK assembly plant on Tuesday night. Two hours later, they returned for more. (Read More…)
Owners of certain Volkswagen, Audi and Porsche vehicles caught up in the diesel emissions scandal will receive hefty payouts, even if their vehicles aren’t bought back by the manufacturer.
Volkswagen and supplier Robert Bosch GmbH have agreed to a settlement worth a combined $1.55 billion, Reuters reports. The agreement covers about 80,000 vehicles outfitted with emissions-cheating 3.0-liter diesel V6 engines — 20,000 of which will return to the automaker for good.
While parting with a beloved luxury vehicle can be difficult, cold hard cash has a way of softening the emotional blow. (Read More…)
After a Volkswagen official was collared in Miami while on vacation, other top company officials have been warned to stay close to home.
Oliver Schmidt, who allegedly lied to environmental regulators to cover up VW’s emissions cheating, was arrested by FBI agents Saturday while returning home from a Cuban holiday. According to Reuters, Schmidt, one of six former or current VW managers indicted on multiple charges this week, could face up to 169 years in a U.S. prison if found guilty.
After the FBI’s lucky airport break, a new report suggests top brass in Wolfsburg are feeling penned in. Kiss that winter vacay goodbye. (Read More…)
The United States has now laid charges against six former or current Volkswagen officials for their role in the diesel emissions scandal.
A federal grand jury in the Eastern District of Michigan returned an indictment today, fingering the execs for playing key roles in a decade-long conspiracy to deceive the U.S. government and public. While five of the men live in Germany, one man — Oliver Schmidt, former head of VW’s regulatory compliance department — was nabbed by the FBI in a Miami airport on Saturday while attempting to return to Germany.
As the charges were handed down, the embattled automaker pleaded guilty to three criminal federal counts and agreed to pay $4.3 billion in criminal and civil penalties. (Read More…)
The first person sentenced in the sprawling Volkswagen emissions scandal is headed to jail in South Korea, but the man who helped design the defeat smog-spewing engines will have to wait for his punishment.
Reuters reports an executive of VW’s South Korean division was handed a sentence of one year, six months today for his side-role in the diesel deception. Meanwhile, a German engineer who was the first employee charged in the scandal will cool his heels a little while longer.
It seems he’s just too useful. (Read More…)
There’s no shortage of ink spilled about the sky-high murder rate in Chicago, but the Windy City’s most overlooked crime scene isn’t a particular neighborhood or address. It’s the freeway.
In a year where Chicago homicides hit a 20-year high (762, up 57 percent from 2015), shootings on the city’s freeways topped all previous tallies. The city blames the increasing roadway bloodshed on rising gang violence, but the danger to motorists seems likely to rise if authorities can’t figure out a way to stamp out the problem. (Read More…)
Guam, besides having the highest per-capita Spam consumption in the world (16 tins per person, on average), is also home to a recently uncovered fraud scheme that placed high-end vehicles in the driveways of island residents.
On paper, anyway. The unsuspecting residents — over 50 of them, authorities say — had no idea their names were placed next to luxury SUV registrations in the Department of Motor Vehicles database. (Read More…)
Have you ever bought a secondhand car, only to find the previous owner forgot his or her favorite CD in the stereo? Well, that didn’t happen to a Kentucky man.
That Volkswagen owner’s discovery is just one of the weird news stories arising from a polar vortex-plagued world. Elsewhere, officials warn of mammal tongue baths, and a politician practices bad automotive PR. (Read More…)
Because we haven’t yet adopted a Utopian work calendar, it’s now the day before the weekend and time for some unusual automotive news.
While there hasn’t been any reports of people or cars being crushed by colorful fall foliage, Mother Nature has been a bad girl, as animals are conspiring to destroy our vehicles through theft or by making a very distracting corpse. Meanwhile, a shrinking number of vehicles are coming from the factory with the best anti-carjacking device ever made. (Read More…)
Not all car owners carry a gun, but most gun owners still use cars to get around. If you happen to have both, you may want to reconsider what you do with one when you park the other — especially depending on where you live.
Compared to your home, cars are much easier for thieves to gain access and they are infinitely easier to steal. When your car is stolen, everything inside goes with it. The Trace, a nonprofit news organization dedicated to expanding coverage of gun violence in the United States, recently reported on a study showing the number of firearms stolen from vehicles and what cities have it the worst. (Read More…)