Tag: Scandal

By on April 9, 2019

Out on bail and awaiting trial, former Nissan CEO Carlos Ghosn was arrested in Japan last week for the fourth time since November — putting the kibosh on a scheduled press conference where he promised to “tell the truth” about what’s been going on.

While Ghosn’s supposed bombshell will have to wait for another day, he did manage to get word out from prison in a personal video message to the world. (Read More…)

By on April 3, 2019

Carlos Ghosn Rogue Introduction - Image: Nissan

Happy to relegate Carlos Ghosn to the past, Renault has announced its former CEO will soon leave the company’s executive board, along with Cherie Blair, wife of former British prime minister Tony Blair. Annette Winkler, the ex-head of Daimler’s Smart brand, will be proposed as the new director at the company’s annual meeting in June, according to the automaker.

The company also decided that Ghosn is not entitled to an annual retirement salary of about 765,000 euros a year due to an internal probe that identified “questionable and concealed practices and violations of the group’s ethical principles.”

Of course, Ghosn maintains he was the victim of a corporate coup masterminded by Nissan executives. The ousted exec recently claimed he’s “getting ready to tell the truth about what’s happening” over social media(Read More…)

By on March 22, 2019

Federal investigators are expanding their ongoing corruption investigation into the United Auto Workers and Detroit Three by taking a long look at donated money intended to buy flowers for member funerals. The concern is that the UAW’s “flower fund” may have been used as a slush fund to finance personal expenses for union officials.

It wouldn’t be the first time. Prosecutors have already secured the convictions of seven people via a probe into the UAW-Chrysler National Training Center. Several jailed union officials, along with former FCA-VP Alphons Iacobelli, helped investigators uncover illicit funds funneled through training centers and charities — including the Leave the Light On Foundation, created by the late General Holiefield. Now they’re helping the feds branch out.  (Read More…)

By on November 6, 2018

Uaw-Logos

The training center embezzlement scandal currently rocking the United Auto Workers began with the indictment of a former Fiat Chrysler labor chief who offered kickbacks to select union officials in exchange for favorable treatment. Alphons Iacobelli, the ex-FCA executive in question, was sentenced to five years in federal prison last August but spent nearly 10 months helping the FBI’s investigation into unionized corruption, resulting in additional indictments.

Federal prosecutors have secured convictions of seven people linked to the conspiracy at this point, claiming FCA executives provided gifts or covert cash payments through the jointly operated UAW-Chrysler National Training Center in an effort to influence collective bargaining. It became such a problem that several union officials now claim they engaged in illicit activities because they were fearful of bucking the trend, losing their six-figure salaries, and being forced back onto factory floors — you know, like the people they were supposed to be representing.  (Read More…)

By on January 23, 2018

Uaw-Logos

Former Fiat Chrysler labor relations chief Alphons Iacobelli pleaded guilty to two of seven charges relating to his role in a plan to divert more than $4.5 million in training center funds to union and company officials on Monday. As part of a plea deal with federal authorities, Iacobelli provided information regarding confidential retirement offers and a former union vice president being groomed to support company initiatives.

In an admission that he and other FCA employees paid various senior UAW officials over $1.5 million in an effort to “obtain benefits, concessions, and advantages for FCA in the negotiation, implementation, and administration,” Iacobelli is now helping map the deepening mire that is the FCA-UAW training center scandal. (Read More…)

By on July 23, 2017

Volkswagen Blue

Government authorities are concerned that Germany’s automakers have been running one of the biggest CARtels in history. Allegedly active since the 1990s, automakers used secret working groups to remain in cahoots on decisions regarding technical issues, suppliers, and cost suppression. The groups may have even set the table for Volkswagen’s diesel emissions scandal by encouraging regulatory cheating.

Major manufacturers had apparently agreed on the size of the tanks containing AdBlue, Germany’s preferred diesel treatment fluid to reduce exhaust emissions, and decided the units should be small to keep fluid prices up. When the entire system turned out to be insufficient in meeting regulatory guidelines, illegal software manipulation became the alternative solution.  (Read More…)

By on December 20, 2016

TTAC regular David Holzman writes:

My brother and several of my friends are wondering what to do about their TDIs. There are probably hundreds of thousands more like them! Some issues with keeping them:

  1. Will they actually be forced to clean up the emissions? (I think this may depend on which state they’re in, but I’m not sure.)
  2. How much will the fix affect gas mileage and performance?
  3. Will the fix be a PITA after it’s installed? If so, how so?
  4. After all the above is considered, what’s the cost/benefit of keeping the TDI vs taking the money and getting a new car?
  5. Is there any reason not to simply wait and see how the fix works out and not rushing to take the buy out?

For my brother, sportiness is not a priority, but having a wagon is. As is reliability and having a very similar car so that his wife, who does not adapt easily to different cars and drives the TDI exclusively, will be happy. But I think VW has discontinued Jetta wagons, and the latest generation of Golf (which has a wagon) gets lousy marks for reliability from CR. In particular, they consider some fuel system problems to be “fairly serious.”

All the best,
David

(Read More…)

By on May 18, 2016

2015 Mitsubishi RVR (6 of 11)

He’s been with the company since the Plymouth Sapporo/Dodge Challenger era, but Mitsubishi president Tetsuro Aikawa’s tenure comes to an abrupt end in June.

Aikawa stepped down today after less than two years at the helm, the victim of his company’s ongoing fuel economy scandal, according to an announcement from the automaker. Ryugo Nakao, the company’s executive vice-president in charge of quality, is also out the door. (Read More…)

By on April 26, 2016

2015 Mitsubishi Mirage ES

Mitsubishi’s fuel economy scandal blew up yesterday after the automaker admitted it has issued misleading mileage data since C+C Music Factory was at the top of the charts.

The scandal that started with inflated mileage numbers on a single minicar one week ago now extends to all Japanese market Mitsubishi vehicles sold over the past quarter century. Reuters is reporting that the automaker compiled fuel economy data using U.S. standards, rather than the Japanese standards that factor in much more city driving. (Read More…)

By on November 8, 2015

SkullExhaustPic1

A number of Volkswagen engineers cheated on tests used to determine carbon dioxide emissions because goals set by former group CEO Martin Winterkorn were too demanding and difficult to achieve, reported German outlet Bild am Sonntag.

The report was “broadly confirmed” by Volkswagen, stated The New York Times. It’s believed goals set by Winterkorn, which would have made Volkswagen vehicles cleaner than required by European regulations, pressured the engineers to manipulate the tests as they were afraid to admit they could not meet those goals.

The engineers pumped up tire pressures to reduce rolling resistance and put diesel in motor oil to make the vehicles more fuel efficient, thus producing less carbon dioxide. The practice “began in 2013 and carried on until the spring of this year,” reported Automotive News.

(Read More…)

By on October 31, 2015

2015 Volkswagen Golf TDI white

On her weekly podcast, German Prime Minister Angela Merkel said Volkswagen’s scandal hasn’t harmed the German automobile industry’s image, but that the automaker would need to conduct its investigation with transparency to restore faith in the country’s industry.

“A lot will depend on how Volkswagen deals with the issue,” Merkel said, according to Reuters.

Separately, sources told German newspaper Sueddeutsche Zeitung (via Reuters) that the automaker, under pressure from investigators, is offering amnesty to employees who reveal what they knew about its cheating devices. Amnesty won’t apply to top-level managers, according to the report.

(Read More…)

By on October 28, 2015

Matthias_Müller_2015-03-12_002

Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

(Read More…)

By on October 18, 2015

Volkswagen TDI

On Friday, September 18, 2015, the Environmental Protection Agency notified Volkswagen that its cars violated clean air standards by incorporating a “defeat device” that used engine management controls to cheat emissions tests.

Since the EPA’s letter to VW, and subsequent order to recall nearly 482,000 Volkswagen cars, the scandal has deepened and developed with Volkswagen shedding billions in value in markets worldwide, halting sales of its cars in the U.S. and Canada, shuffling executives to other seats or out the door entirely, and other regulatory agencies jumping in to investigate.

Here’s a roundup of the stories so far.

(Read More…)

By on October 15, 2015

maxresdefault1

Volkswagen Group will recall 8.5 million vehicles in the European Union’s 28 member states, including the 2.4 million vehicles it is already being forced to recall by the KBA, Germany’s transportation authority, the automaker announced Thursday.

Vehicles from the Volkswagen, Audi, Seat and Skoda brands are included in the recall. The latest EA 288 diesel engine is not part of the recall.

Volkswagen said it will begin to rollout fixes in January 2016.

(Read More…)

By on September 23, 2015

Martin Winterkorn in Shanghai - Picture courtesy Bertel Schmitt

Five senior members of Volkswagen’s supervisory board are meeting Wednesday to discuss the future for the automaker after stock prices have plummeted and the company has publicly acknowledged it cheated worldwide emissions tests, the BBC reported.

The smaller Wednesday meeting is ahead of a regularly scheduled full board meeting Friday, where members are expected to discuss the contract extension to 2018 for CEO Martin Winterkorn. According to reports, Winterkorn’s future may be decided before Friday’s meeting.

Winterkorn issued a video statement in German on Tuesday apologizing for the scandal, but stopped short from resigning from the top VW post. The German newspaper Der Tagesspiegel reported that Winterkorn would be replaced this week.

(Read More…)

Recent Comments

  • SPPPP: Are we suuuuuuuure this is a crossover? Because if this is a crossover, then I think that makes the old Suzuki...
  • SPPPP: Which of these 3 ideas is more wasteful of time and talent … Sending the NSX technicians home without...
  • -Nate: WEll ; You always wanted a convertible, right ? . -Nate
  • SPPPP: If he had kidnapped a Walmart customer FROM WALMART, then I think so.
  • Lightspeed: The roof at the header is rusting on my 2000 Lexus. It’s really irritating because it’s in a...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States
  • Moderators

  • Adam Tonge, United States
  • Corey Lewis, United States