#VolkswagenLaw

The much debated Volkswagen Law most likely will remain much debated for a while, says Automobilwoche [sub]. The matter is pending at the European Court of Justice, and no decision has been rendered, however, “an influential expert witness” (Automobilwoche) rendered the opinion that the current situation is within the law.

The EU Commission in Brussels made good on its threat to drag Germany in front of the European Court of Justice. According to Automobilwoche [sub], Brussels has filed suit in Luxemburg. Brussels demands that the “special treatment” for Volkswagen is to be dropped. If the suit is successful, and if Germany remains obstinate, then a penalty of at least €46.6 million ($62.2 million) is demanded. The fine would have to be paid by the German government, not by Volkswagen.

Suzuki’s suit against Volkswagen had precision timing. Or was very lucky. Volkswagen is heavily distracted by another suit, namely the EU Commission against the Federal Republic of Germany. Casus belli: The VW law. As indicated last week, Brussels is dragging Germany in front of the European Court of Justice. Brussels demands that the “special treatment” for Volkswagen is to be dropped. If the suit is successful, and if Germany remains obstinate, then a penalty of at least €46.6 million ($62.2 million) is demanded. A bargain, considering the hundreds of billions which are being moved around to avoid a meltdown of Europe. The fine would have to be paid by the German government, not by Volkswagen, writes Automobilwoche [sub]

The old Volkswagen law is making headlines again. After three years of silence, the European Commission could drag Germany again in front of the European Court of Justice , Der Spiegel reports. A decision to sue could be made by Wednesday, sources of the German magazine say.

Brussels just ratcheted up the thumbscrews they placed on Berlin: “Either drop that VW-Gesetz now, or we’ll see you in Europe’s High Court. You’ve go two months.” Automobilwoche (sub) has the story in German. In case you don’t know: The VW-Gesetz (VW-law) was written to give the state of Lower Saxony veto power. Lower Saxony holds 20.1 percent of Volkswagen. According to German law, a minority shareholder must have 25 percent to exercise veto power. Lower Saxony didn’t want to spend the extra money for the extra shares. A law was passed instead. For a long time, this law was seen as a weapon to ward off foreign raiders and other riff-raff: Who wants to take over a company they can’t boss around? Now, the law bothers two parties: