By on January 7, 2020

Over 200 investors are seeking 900 million euros in damages over claims that Mercedes-Benz parent Daimler failed to disclose the use of emissions cheating devices similar to those that got Volkswagen into trouble back in 2015. This isn’t the first time the issue has come up. German prosecutors claimed nearly 690,000 Mercedes-Benz vehicles came equipped with rigged exhaust gas after-treatment systems and Daimler was slammed with a €870 million ($960 million) fine over the negligent violation of European clean air standards in the fall.

Those who invested into the firm are hoping to recoup losses from the scandal after the automaker’s share price shat the bed. Lawyers repressing the investors are seeking compensation after Daimler’s stock fell from €90 a share fall to approximately €60 in 2018, once German regulators began formally accusing the automaker of trying to circumvent emission rules.  (Read More…)

By on December 10, 2019

Volkswagen Group can’t seem to escape the rippling effects of its 2015 emissions cheating scandal. It wasn’t long ago that the automaker was subjected to surprise raids from German prosecutors, still investigating its regulatory malfeasance. On Monday, Canada threw its hat into the ring — charging the company with importing roughly 128,000 vehicles into the country in direct violation of its environmental laws.

Environment and Climate Change Canada (ECCC) announced VW is facing 60 counts of breaching the Canadian Environmental Protection Act by selling automobiles that fell outside the prescribed emission standards. Broken down, that includes 58 counts of contravening the law between 2008 and 2015 with two counts of providing misleading information.  (Read More…)

By on December 3, 2019

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.  (Read More…)

By on September 30, 2019

While Volkswagen Group’s diesel lawsuits are more or less settled in the United States, 470,000 diesel owners in Germany are still fighting to see their payday. Unfortunately, the courts aren’t certain they’re deserving.

The court hasn’t settled on anything, but Monday’s introductory hearing concluded with presiding Judge Michael Neef wondering what customers actually lost by having their vehicles equipped with emissions-cheating software. The court claims its primary goal is to assess whether or not any loss in value can be attributed to vehicle bans that came years after VW’s diesel scandal broke. It’s concerned that drivers’ ability to continue using the automobiles doesn’t warrant awarding owners damages.

“It doesn’t make sense to us that drivers should be granted the right to use cars for free,” Neef said on behalf of the three judges hearing the case, according to Bloomberg. “Otherwise, we would have to grant punitive damages that do not exist under German law.”  (Read More…)

By on September 17, 2019

Dieselgate never dies. Germany’s Federal Motor Transport Authority (Kraftfahrt-Bundesamt) has informed Audi that it will be subjected to additional fines if it fails to meet upcoming deadlines for retrofitting manipulated diesel models with updated software.

Reports from Bild am Sonntag, later confirmed by Reuters, claim the regulatory authority issued three letters to the automaker stipulating that it had until September 26th to replace the software in emissions-cheating V6 and V8 TDI engines (originally certified as EU6 compliant) lest it be fined 25,000 euros (about $27,500) per vehicle. While fines are only applicable to cars still carrying illicit software, the transport ministry estimated some 127,000 Audi vehicles qualified in Europe last year. There were originally around 850,000.  (Read More…)

By on July 9, 2019

After Volkswagen admitted to equipping some of its diesel-powered autos with illegal software designed to circumvent emissions testing in 2015, every automaker on the planet fell under enhanced scrutiny. By 2016, U.S. regulators were checking on Mercedes-parent Daimler to see if there were any pollutant-related shenanigans taking place behind the scenes. Germany followed suit shortly thereafter, launching its own investigation.

However, with no local updates on the matter, it was presumed Daimler was in the clear — except Germany did find evidence of corporate misdeeds and the company recalled 3 million vehicles in 2017. At the time, we figured the situation would swiftly bleed over into the United States and help wrap things up. But it hasn’t yet and The Detroit News took time this month to ponder what’s taking federal regulators so long.  (Read More…)

By on January 18, 2019

TDI Clean Diesel

IAV GmbH, the German engineering company co-owned by Volkswagen Group, plead guilty to a felony count of conspiracy in a U.S. District Court on Friday, to the surprise of absolutely no one. Last month, authorities said the firm had already agreed to a guilty plea and multi-million-dollar fine for its role in helping Volkswagen Group develop software that could effectively help cars falsify emissions test results.

That makes the courtroom officiation little more than a formality. While the court wants to conducts a probationary investigation, effectively delaying sentencing until May 22nd, there is little doubt what the final penalty will be — $35 million and two years of operation under the supervision of a court-appointed monitor.  (Read More…)

By on November 25, 2018

Volkswagen VW Badge Emblem Logo

While Volkswagen’s diesel emission fiasco has died down in the United States, costing the automaker billions before going achieving dormancy, the legal fires burn brightly in Europe. On November 14th, a German court ruled that VW must reimburse the owner of a Golf the full price of the vehicle from when it was purchased in 2012. The decision sets a new precedent, possibly opening the firm to additional expenses via buybacks.

However, Volkswagen AG has claimed around 9,000 judgements have already been made relating to the diesel emissions scandal — most of which resulted in customer complaints being unsupported by district and higher courts. “In our opinion, there is no legal basis for customer complaints [in Europe]. Customers have suffered neither losses nor damages. The vehicles are safe and roadworthy,” VW said.  (Read More…)

By on October 11, 2018

Image: Audi

Big scandals have a way of sticking around for a while. Not just days or weeks, but years.

That’s the case with Audi, which is now facing a new investigation in Germany for falsifying documents, mileage readings, and vehicle identification numbers (VINs) in South Korea, going back to 2013.

(Read More…)

By on October 5, 2018

electrify-america-ev-charging-station, Electrify America

Volkswagen’s court-mandated subsidiary, Electrify America, has announced its second investment of $200 million into the nation’s electric vehicle charging infrastructure, and not a moment too soon. Plug-in car sales in the United States have already surpassed last year’s record of nearly 200,000 deliveries, thanks to Tesla’s rollout of the Model 3, and we’ve still got three months left to go.

Of course, it wouldn’t really matter if EV sales tanked in 2018 because VW is legally obliged to do this. There could have been a single, lonesome plug-in sale this year and Electrify America would still have to spend the same amount — as per its parent company’s agreement with the U.S. government. This time around, the goal is to improve charging infrastructure between cities while not ignoring major metropolitan areas. Cycle 2 will also focus primarily on California for the next 30 months, which is probably for the best. The state accounts for over half the country’s yearly EV sales.  (Read More…)

By on September 28, 2018

Image: Audi

Volkswagen Group’s supervisory board has postponed a decision on the future of Audi CEO Rupert Stadler, who has been in jail since June due to his presumed connection with the automaker’s diesel malfeasance. Despite having scheduled a Monday meeting to assess Stadler’s role within the company and how best to end it, the board found itself unable to come to a conclusion by Friday.

That does not mean the imprisoned CEO will be getting a pardon from the company, however. Stadler’s representatives and VW simply failed to negotiate a solution that would see Stadler step down from his role as Audi CEO and as a VW Group management board member, sources close to the situation told Automotive News Europe(Read More…)

By on September 23, 2018

Porsche will quit offering diesel powertrains for its cars and light trucks, effectively adding another nail to the fuel’s coffin. Following Volkswagen Group’s emission’s fiasco in the United States, which included Porsche, Europe has become increasingly critical of diesel-engined vehicles. Citywide bans have have been proposed throughout the region and, as of February, Porsche suspended diesel sales due to an ongoing German probe into VW Group’s diesel engines.

That investigation found that the Cayenne EU5 model’s 8-cylinder diesel was in violation of the established rules, affecting 13,500 units, according to Bild am Sonntag. Porsche then recalled nearly 60,000 Cayenne and Macan diesels in May as it launched its own investigation.

“Porsche is not demonizing diesel. It is, and will remain, an important propulsion technology,” Porsche Chief Executive Oliver Blume said in a statement. “We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free.”  (Read More…)

By on September 19, 2018

german flag and reichstag

Roughly one year ago, German automakers were confronted with a crisis. Following Volkswagen’s diesel emissions fiasco, European antitrust regulators became suspicious that BMW, Daimler, and VW Group were involved in a longstanding automotive cartel that cooperated on decisions regarding technical issues, development, supplier management, and illegal price fixing. Investigators were also concerned manufacturers worked together to standardize diesel treatment fluid (AdBlue) reservoirs to reduce exhaust emissions, then encouraged each other to cheat on emissions tests when they were deemed insufficient.

This resulted in a series of raids and then almost a full year of silence on the matter. However, if Volkswagen’s dieselgate has taught us anything, it’s that German authorities prefer a snail’s pace when pursuing a criminal probe.

Apparently unsatisfied with the initial findings, the European Commission opened an in-depth and official investigation on Tuesday against the “circle of five,” a group that includes Audi, VW, Porsche, Daimler, and BMW. The quintet is accused of holding meetings where they colluded to limit the development and application of certain emissions control systems for cars sold in Europe. There’s also an accusation of price fixing. (Read More…)

By on September 14, 2018

Image: Audi AG

Volkswagen’s supervisory board will meet on Monday to map out the future of Rupert Stadler, the suspended chief executive of its Audi brand. German outlet Der Spiegel reported on Friday that VW intends to decide whether or not Stadler, who has been in police custody since mid-June as part of a broader probe into the company’s diesel cheating fiasco, should resign his post.

Officially, the automaker’s position on the matter is that the CEO is innocent until convicted of criminal wrongdoing. But having him in the crosshairs of the media and investigators isn’t great PR for the company.  (Read More…)

By on September 11, 2018

Volkswagen VW Badge Emblem Logo

A judge hearing a case brought by investors against Volkswagen has deemed its former corporate head, Martin Winterkorn, was too slow in addressing the emissions test cheating that steered the automotive giant into colossal U.S. fines. It’s an early blow against the German company in a suit seeking $10.6 billion in damages for stock losses suffered when the scandal finally became public.

“Anyone acting in good faith would have followed up on this information,” Judge Christian Jaede of the ex-CEO during the second day of hearings held at the Braunschweig higher regional court. “This appears not to have happened.” (Read More…)

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