VW Attempting to Block Emissions Audit in Constitutional Court

by Matt Posky

Published: December 29th, 2017

vw attempting to block emissions audit in constitutional court

Volkswagen Group said on Thursday that it would be petitioning Germany’s constitutional court to overturn the appointment of a special auditor to investigate the actions of its management during its diesel emissions scandal. Appointed last November, the auditor’s goal is to establish whether or not VW’s top brass withheld information about the manipulation of vehicle emissions as they related to testing.

Even thought the automaker has said it wanted to improve transparency shortly after the scandal kicked off in September of 2015, Volkswagen wants the work of the auditor suspended prior to the constitutional-court hearing against it. This begs the question: Does VW still have something to hide or is it so fed up with the litigation surrounding “dieselgate” that it’ll do just about anything to keep officials from dredging up the past?

There are certainly reasons to suspect the former. Prosecuted employee Oliver Schmidt indicated that he was misused by the automaker during his trail, suggesting that the company advised him to cover up the truth. Likewise, longstanding Volkswagen pater familias Ferdinand Piëch outright said the firm’s executive board had been made aware of the illegal manipulation of diesel exhaust gasses months before the public disclosure — a claim which further strained his relationship with his clan.

However accusations, no matter how damning, aren’t proof. The automaker has said it would be heading to the constitutional court for appeal. According to Reuters, a previous attempt in the German town of Celle ruled that VW was ineligible. The automaker is now saying that decision was a violation of its rights.

In addition to the potentially criminal implications of the auditor’s findings, investor groups are seeking billions in damages from VW on the grounds that its executive management board was aware of emissions cheating and failed to disclose possible financial damages to investors in a timely manner. German securities law also requires companies to publish any market-sensitive news promptly.

#AutomotiveIndustry #Dieselgate #Emissions #FerdinandPiech #HotLegalAction #OliverSchmidt #Volkswagen #VolkswagenAg #VolkswagenGroup #VWAG #VwEmissionsScandal

Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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Brn on Dec 29, 2017

While I did wish the TTAC staff a Happy Holidays, I also said I'd continue to be critical. In that spirit... A professional writer should understand the term "begs the question".

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Lorenzo on Dec 30, 2017

Aw, it's just a bunch of diesel-chaser lawyers who want to get in on the payoff. Those poor Volkswagen executives have been through enough and have learned their lesson. Besides, they're not paying all those fines and penalties, the stockholders are. That's just going to lead to massive write-offs and reduced taxes collected. Considering they're never getting back the money they loaned Greece, it's in the German government's best interest to tie a bow on this scandal and stuff it in a closet.

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