It hasn’t been what we would call a tranquil year for Continental. The German parts supplier spent the summer preparing for one of the worst financial periods in its 149-year history and apologizing for its involvement with the National Socialist German Workers’ Party (Nazis) by hiring an independent researcher to chronicle their forced-labor practices in detail. The dark trip down memory lane served as a strange interlude from the company’s financial concerns, which re-manifested in September when Continental announced it would have to eliminate around 13 percent of its existing staff — or about 30,000 employees.
News has broken that the supplier’s 2020 troubles didn’t end there. German prosecutors also made their rounds on September 22nd, stopping at Continental facilities in Hanover and Regensburg as part of an ongoing investigation into Volkswagen’s Dieselgate fiasco from 2015.
Mitsubishi is under investigation by German prosecutors for the suspected use of illegal defeat devices on diesel engines. As usual, the probe was kicked off by a series of raids — practically a cliche at this point.
Germany has certainly ran with the concept after U.S. regulators faulted Volkswagen for using illegal defeat devices to cheat diesel emission testing procedures in 2015. The reality is that regulators are cracking down the world over since the scandal, with Deutschland taking extra precautions to ensure other domestic brands don’t shame themselves like VW did.
Investigators are looking at 1.6-liter and 2.2-liter 4-cylinder Euro 5 and Euro 6 diesel engines and asking individuals who own Mitsubishi models (built after 2014) with those units to contact the police.
German prosecutors raided Volkswagen’s Wolfsburg headquarters on Tuesday, continuing their prolonged quest to bust the automaker over a diesel emission scandal that has been more or less settled in the United States since 2017.
Germany must want to do an incredibly thorough job of investigating the automaker — it’s difficult to imagine raiding the same offices over and over being all that fun, especially after VW formally confessed its malfeasance in other parts of the world. However, according to Reuters, prosecutors might be looking for something different this time around. Volkswagen has said it is still cooperating with authorities, but described its latest surprise encounter with them as unfounded.
It might have taken two years of investigative raids and Daimler acting as a whistleblower, but Germany’s Big Three automakers finally stand accused by the European Union of collusion. On Friday, the European Commission claimed that Volkswagen Group, BMW and Daimler broke antitrust rules by acting together to delay the introduction of two emission cleaning systems between 2006 and 2014.
The Commission’s preliminary view is that BMW, Daimler and VW participated in a collusive scheme, breaching the EU’s competition rules by limiting the development and proliferation of new emission cleaning technology for diesel and gasoline-fueled passenger cars sold in the “European Economic Area.” This collusion occurred in the framework of the car manufacturers’ so-called “circle of five” technical meetings — which includes VW Group’s Porsche and Audi.
Volkswagen Group Fined an Additional $1.18 Billion for Emissions Cheating, More Suspects Emerge at Audi
In 2017, the U.S. hit Volkswagen with a $4.3 billion fine as part of the company’s plea agreement for violating of the Clean Air Act. It was a rough ride for the automaker, caught using defeat devices on its diesel engines, but it brought the scandal more or less to a close in America.
An ocean away, it seemed nothing would come of the endless raids by German authorities on VW-owned facilities. Apparently, the wheels of justice just turn a little slower in Europe, as the automaker was fined 1 billion euros on Wednesday. It’s one of the largest financial penalties ever imposed on a company by German authorities.
While companies are often found guilty of sketchy and illicit behavior, it’s becoming increasingly difficult not to feel some measure of sympathy for German automakers. The same goes for the government officials whose job it is to repeatedly raid the homes and offices of people employed by those manufacturers. Once gain, German prosecutors have searched both Volkswagen and BMW over diesel-related shenanigans.
Volkswagen saw 13 of its offices raided in Wolfsburg throughout the month of March. Braunschweig-based authorities seized physical and digital files in the hopes of catching the automaker in a lie from 2015. At the time, VW claimed an in-house investigation found it had understated fuel consumption and carbon dioxide emissions on no more than 36,000 vehicles. Considering the diesel emissions scandal affected far more vehicle than this, as well as the company’s much higher earlier estimate, prosecutors hope to catch the company out.
Meanwhile, BMW saw its facilities searched over suspicions that it employed a defeat device to circumvent diesel emission testing. The automaker said authorities were looking into “erroneously allocated” software on the BMW 750d and BMW M550d.
Curious as to whether Volkswagen’s management agreed to “excessive” payments of its chief labor representative, German prosecutors raided the carmaker’s headquarters. While a raid certainly sounds bad, it seems like the only way the country’s government bothers to acquire information from automotive manufacturers anymore.
This year alone, VW has been subjected to numerous raids relating to its diesel emission scandal and possible pricing collusion between BMW and Daimler. While one imagines a swarm of suits, backed by uniformed officers, as employees frantically shred documents, the frequency of such impromptu investigations probably just leaves staffers annoyed. I’m starting to think the German government likes showing up unannounced more than the country’s car builders enjoy illicit activities.
Following an earlier raid at BMW, Daimler AG and Volkswagen Group were also searched by antitrust officials from the European Union Commission and German government this week. Despite claiming whistleblower status, Daimler is still subject to investigation — though it’s less likely to incur the same financial penalties if the collusion charges go to court.
Over the summer, investigators from the EU stated there would be an investigation into several German carmakers after allegations surfaced that companies conspired to fix prices on various automotive technologies over several decades. But it wasn’t until Monday that officials searched Daimler’s corporate offices and collected documents from Volkswagen’s headquarters in Wolfsburg and at Audi’s home base in Ingolstadt.
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- Anonymous My dad drove an 84 LTD. He always bragged about how special it was. Interesting to see that again.
- Conundrum Here's how much Ford had to do design-wise with that engine in the article's lead picture.Zero. It was a Cosworth when Cosworth was still original Cosworth, over 30 years ago. The engine shown is a development of the original DFV. Ford paid to have its name on the cam covers for decades.I wonder who Ford will get to design this proposed new F1 engine for 2026. Because sure as hell, they don't have the in-house talent to do it themselves.
- Sayahh Story idea or car design competition: design a compact sedan, a midsize sedan, coupe and/or wagon specifically for people 6'4" through 7'2". Not an SUV nor a crossover nor a raised chassis like the US Toyota Crown or Subaru Outback.
- Sayahh I only check map app only when absolutely necessary and only at a red light. An observation: lots of ppl leave 2 car lengths (or more) between themselves and the car ahead of theirs so that they can text or check the internet (because they are afraid they might roll forward and hit the car in front of them?) This drives me crazy because many ppl do it and 3 cars will take up almost 7 car lengths and ppl cannot get into the left turn lane when it's bordered by a cement "curb." Worse is when they aren't even using their phone and have both hands on the stewring wheel and waiting for the green light. Half a car length is enough, people. Even one car length is too much, but 3 or 4 car lengths? At 40 MPH, maybe, not at 0 MPH please.
- 6-speed Pomodoro My phone never leaves my pocket while driving. This is fine in my daily with bluetooth and also fine in my classic car, but people get mad in a hurry that I'm ignoring them.