Porche takes over Volkswagen

[DavidS]

The VW Toureg and the Porsche Chyenne are basically the same vehicle.. different engines, and suspensions, but that's about it. I guess they wanted their partnership to go further. WOW.

Shares skyrocket as Porsche takes over Volkswagen - Yahoo! News


FRANKFURT (AFP) – German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 percent of VW shares, Porsche said.
Porsche said in a brief statement late Monday that by buying new VW shares, it "will thus increase its participation to 50.76 percent" of the group's capital, compared with 42 percent before.
The news sent Volkswagen shares rocketing up 13.48 percent in early afternoon trading on the Frankfurt stock market on Tuesday.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 percent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than 1,000 euros (1,350 dollars) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at 254.74 euros, close to the range Porsche had set for itself of between 200-250 euros.
VW said in August that it had overtaken Ford to become the world's third biggest automaker behind General Motors and Toyota.
Porsche is now obliged by Swedish law to make an offer for outstanding shares in truckmaker Scania, in which VW is the dominant shareholder.
But Porsche will offer a minimum price for Scania shares and has no "strategic interest" in the company, the statement said.
Porsche, which makes the 911 sports car and Cayenne sport utility vehicle, plans to raise its stake in VW to more than 75 percent this year, with which it expects to gain total control over the group.
Having more than 75 percent would allow it to seal a so-called domination contract giving it full financial control.
In Germany, a minority investor that owns 25 percent of a company's shares can block strategic decisions, but in the case of VW that level is currently set by law at 20 percent, the amount owned by the state of Lower Saxony, where VW is based.
Porsche has challenged the so-called VW law and has received support from the European Commission, which has threatened to haul Berlin into European court again after a revised version of the law retained the 20 percent minority blocking threshold.
Porsche built up its stake in the much bigger VW through the use of stock options that allowed it to catch markets by surprise last year with the size of its holding.
VW's works committee is wary of the takeover however and of Porsche boss Wendelin Wiedeking, who has crossed swords with trade unions, which are extremely powerful at VW.

VW posted sales of 109 billion euros in 2007, while Porsche, which employs 11,600 workers, reported sales of seven billion euros in its 2006-2007 fiscal year. The IG Metall trade union fears a Porsche takeover would lead to job cuts at German VW plants, despite assurances from Porsche that it is a long-term investor in the auto giant.

 

[editec]

And here I thought VW owned Porsche already.

Didn't VW used to own it?

 

[del]

And here I thought VW owned Porsche already.

Didn't VW used to own it?

the original bug was designed by ferdinand porsche, i thought there was some ownership between the 2 companies prior to this as well. car cos. were buying and selling each other pretty frequently in europe in the '90's.

 

[KissMy]

VW Cheated on Diesel Emissions; U.S. Orders Big Recall

Volkswagen to recall nearly a half-million cars, because the automaker illegally installed software in its cars to evade standards for reducing smog.

VW used software to detect when the car is undergoing its periodic state emissions testing. Only during such tests are the cars’ full emissions control systems turned on. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A. said.

“We expected better from Volkswagen,” said Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance. She called the automaker’s actions “a threat to public health.”

The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The pollutants are linked to a range of health problems, including asthma attacks, other respiratory diseases and premature death.

Experts in automotive technology said that disengaging the pollution controls on a diesel-fueled car can yield better performance, including increased torque and acceleration.

“When the pollution controls are functioning on these vehicles, there’s a trade-off between performance and emissions,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research group. “This is cutting corners.”

It was Mr. Kodjak’s group, in conducting research on diesel vehicles, that first noticed the discrepancy between Volkswagen’s emissions in testing laboratories and on the road. They brought the issue to the attention of the E.P.A., which conducted further tests on the cars, and ultimately discovered the use of the defeat device software.

California has issued a separate notice of violation to the company. California, the E.P.A. and the Justice Department are working together on an investigation of the allegations.

Affected diesel models include the 2009-15 Volkswagen Jetta 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat and 2009-15 Audi A3.

The Justice Department’s investigation could ultimately result in fines or penalties for the company. Under the terms of the Clean Air Act, the Justice Department could impose fines of as much as $37,500 for each recalled vehicle, for a possible total penalty of as much as $18 billion.

The notice of violation is part of a broader, more aggressive enforcement effort by federal regulators on the auto industry. Analysts and activists said it was intended to send a message to automakers that they would be harshly treated for compromising federal rules.

“This is several steps beyond the violations that we’ve seen from other auto companies,” said Tyson Slocum, director of the energy program at Public Citizen, a consumer advocacy group. “They appear to have designed a system with the intention to mislead consumers and the government. If that’s proven true, it’s remarkable and outrageous. It would merit a heck of a lot more than just a recall and a fine. We would see criminal prosecution.”

 

[Jarlaxle]

Did you dredge up this six-year-old thread for any reason?

 

[waltky]

VW finds new boss to steer it out of crisis...

Volkswagen turns to Porsche boss to steer it out of crisis: source
Thu Sep 24, 2015 Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal broadened.

Mueller, 62, has been widely tipped to succeed Martin Winterkorn, who quit on Wednesday, when the German carmaker's supervisory board meets on Friday. He will take responsibility for steering Volkswagen through the biggest business crisis in its 78-year history. The crisis deepened on Thursday as officials in Europe and the United States stepped up their investigations. Germany's transport minister said Volkswagen had manipulated tests in Europe too. "We have been informed that also in Europe, vehicles with 1.6 and 2.0 liter diesel engines are affected by the manipulations that are being talked about," Alexander Dobrindt told reporters, adding it was unclear how many vehicles in Europe were affected.

Dobrindt said Europe would agree on new emissions tests in coming months that should take place on roads, rather than in laboratories, and that random checks would be made on all manufacturers. Separately, a group of at least 27 U.S. state attorneys general launched a multi-state investigation of Volkswagen's representations to consumers about its diesel vehicles, and said it will send subpoenas to the automaker. “I am furious that the world’s leading car company wilfully took steps that polluted our environment and deceived consumers,” Maryland Attorney General Brian Frosh said in a statement. In Sacramento, California, that state's top air quality regulator said her agency is preparing a series of actions against Volkswagen in response to the company's admission that it cheated on tailpipe pollution tests. "Right now we are organizing ourselves for a major enforcement action," said Mary Nichols, head of the California Air Resources Board.

Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal

The state also intends to order a recall of Volkswagen diesel vehicles sold in the state with software that enabled the cars to pass the agency's emissions tests, but then emit far more pollution on the road. Volkswagen has said 11 million cars globally had the software fitted, but it was not activated in the bulk of them. As well as the cost of regulatory fines and potentially refitting cars, Volkswagen faces criminal investigations and lawsuits from cheated customers and possibly shareholders. More immediately, the new CEO will have to restore the confidence of customers and motor dealers, who have expressed frustration at a lack of information about how they will be affected by the scandal.

Mueller has a majority on the 20-member supervisory board, the source said. Volkswagen declined to comment. The board will also dismiss the head of the company's U.S. operations and top engineers at its Audi and Porsche brands, a senior source told Reuters, as it seeks a fresh start. "He is a good choice even though he may be seen as a transitionary CEO until another internal candidate such as VW brand CEO (Herbert) Diess has earned their stripes," Arndt Ellinghorst, an analyst at Evercore ISI investment banking advisory firm, said of Mueller.

PRESSURE

See also:

India to probe Volkswagen scandal for possible irregularities
Sep 24, 2015: The Indian government has initiated a probe into possible violations by embattled German carmaker Volkswagen and has asked testing agency ARAI to look into the issue.

The government is concerned whether the company dodged emission tests in India on lines similar to what it did in the US, where an investigation is on and can result in possible penalties of over $18 billion for manipulation. "We have requested the Automotive Research Association of India (ARAI) to check up with Volkswagen and find out if this issue is applicable over here. They are inquiring into the matter," heavy industries secretary Rajan Katoch said.

Asked whether the government had taken note of the charges against Volkswagen, Katoch replied, "Yes. This is, in fact, topmost on my mind right now. Obviously, we need to make sure these kinds of things do not happen here. We are studying the matter...if there are any regulatory issues here, they are looked at and plugged." When contacted, a spokesperson for the VW group said he was not aware of the development. "I cannot comment on any such development. We are not aware of this development."

Apart from the US, governments in Europe and some other countries are also looking into possible violations by VW to dodge emission tests. The auto firm has admitted it used a software in some of its diesel engines during emissions tests in the US which enabled manipulation of results. The Heavy Industries Ministry is the nodal authority for implementation of the National Automotive Testing and R&D Infrastructure Project ( NATRIP), under which testing and R&D centres including ARAI have been set up across the country for vehicles.

Road transport and highways secretary Vijay Chhibber also said the department is working in tandem with the heavy industries ministry over the matter. Chhibber said steps such as sending advisories to all states and the auto sector highlighting the government's concerns over the matter are being taken.

India to probe Volkswagen scandal for possible irregularities - The Times of India

 

[waltky]

Norway launches investigation into VW...

Germany: scandal affects VW commercial vehicles
25 Sept.`15 — The latest developments on the Volkswagen emissions scandal. All times local.

2:25 p.m.

Germany's transport minister says that light commercial vehicles at Volkswagen appear to be affected by the scandal over software used to cheat U.S. emissions test. The U.S. Environmental Protection Agency accused VW a week ago of installing the so-called "defeat device" in 482,000 cars sold in the United States. VW later acknowledged that similar software exists in 11 million diesel vehicles worldwide. The German government has said that those included cars in Europe but it's not yet clear how many. German Transport Minister Alexander Dobrindt said Friday: "According to our current information, light commercial vehicles as well as cars at Volkswagen are affected by the improper manipulation of diesel engine emissions." He didn't give details.

2:00 p.m.

Daimler AG, the maker of Mercedes cars, is rejecting claims by a German environmental group that it appears to have been involved in manipulation of emissions data. The Deutsche Umwelthilfe group said Friday that it had information that almost all German manufacturers of diesel cars — including Daimler — exceed emissions limits by such a level that it has to assume illegal devices to reduce nitrogen oxide readings are in play. Daimler on Friday issued a statement strongly denying any manipulation. It said that so-called defeat devices have never been used by the company, and that goes for all diesel and gas engines. It said that it sticks to all laws and rules, and it isn't aware of any measurements showing that its vehicles fail to keep to legal requirements.

1:00 p.m.

Volkswagen CEO Martin Winterkorn, right, and Porsche CEO and member of the board of Volkswagen, Matthias Mueller, left, pose for the media beside a car prior to the company's annual press conference in Berlin, Germany. Volkswagen’s supervisory board is meeting Friday, Sept. 25, 2015 to discuss who to name as CEO after Martin Winterkorn quit the job. Matthias Mueller, the 62-yead-old head of VW’s Porsche unit, emerged as one of the favorites.

Italy's transport minister says spot-checks will be done on at least 1,000 diesel vehicles of all brands following the Volkswagen emissions-rigging scandal. Graziano Delrio said on a late-night talk show that checks will be conducted at dealerships before sale. That will cost 8,000 euros per vehicle, meaning an overall tab of 8 million euros (nearly $9 million). Delrio, citing a "problem of health, trust," said the truth must be established. An Italian consumer group, Altroconsumo, said Friday a class action suit was planned and called on Volkswagen to either correct the software employed in the emissions-rigging or substitute the vehicle. A Turin-based prosecutor specializing in health and pollution probes has ordered checks of Volkswagens, and eventually of other brands, in Italy to see if commercial fraud or environmental damage is involved.

12:20 p.m.

Norwegian authorities have launched an investigation to find out whether the Volkswagen emissions-rigging scandal affects the Nordic country. Norway's economic crimes unit said Friday it will investigate whether "there has been a criminal offense in Norway and whether the fraud has any significance for the cars in question that have been imported to the country." The agency said it was working on the case jointly with the customs and transportation authorities.

10:55 a.m.

 

[sear]

Thanks DS.

 

[waltky]

Volkswagen rotating staff to improve oversight...

Volkswagen to 'rotate staff' to improve oversight
20 Dec.`15 - German car giant Volkswagen, scrambling to contain a massive pollution test cheating scandal, said Sunday it would begin rotating staff to keep better tabs on its operations.

Employees in key roles will switch jobs more often than is currently the case, VW supervisory board chief Hans Dieter Poetsch said in an interview with the Welt am Sonntag newspaper. "The relevant employees will only stay a certain amount of time in a specific job and then change," he was quoted as saying. He said the new personnel plan was intended to break up long-standing structures that allowed rules to be broken in secret. Poetsch said the scheme would be introduced along with new oversight mechanisms. "We will bolster checks, determine responsibilities in a clearer way and better implement technical supervision of procedures," he said.

Poetsch added that the "four-eyes principle" of at least two people being involved in key work would become a company watchword. He admitted that some positions were so specialised that frequent rotation could pose challenges. But he said that such jobs could be filled within the Volkswagen group, with people switching, for example, from Audi to Porsche to the VW brand manufacturing divisions. Volkswagen was plunged into its deepest-ever scandal in September, when it was forced to admit it had installed emissions cheating software into 11 million diesel engine vehicles worldwide.

VW was found to have used so-called "defeat devices" that activate emissions controls during testing, then turn them off under normal operations, allowing illegal amounts of nitrogen oxide to spew into the air. The costs facing VW, once seen as the paragon of German industry, are still incalculable, in terms of reputation and global earnings and because it faces billions in possible fines and legal costs. Chief executive Martin Winterkorn resigned in the wake of the allegations but insisted he knew nothing about the scam.

Volkswagen to 'rotate staff' to improve oversight

 

[waltky]

U.S. DoJ goin' after VW now...

VW sued by US justice department
4 January 2016 - The US justice department is suing Volkswagen over the emissions scandal that saw the German car giant fit software in millions of cars to cheat emissions tests.

In September last year, following an investigation by US regulators, VW admitted fitting the so-called defeat device on 11 million vehicles globally. The scandal has hit sales of VWs worldwide. The company has put aside billions of euros to deal with the fallout.

The lawsuit, on behalf of the US Environmental Protection Agency (EPA), was filed on Monday in a federal court in Detroit, Michigan. "The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA's standards, resulting in harmful air pollution," the filing said.

It also alleges that VW "violated" clean air laws by selling cars that were different in design from those originally cleared for sale by the EPA. "With today's filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution," said assistant administrator Cynthia Giles for the EPA's Office of Enforcement and Compliance Assurance. "So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action."

The department said the filing was just the first step in "bringing Volkswagen to justice". The carmaker is also facing separate criminal charges, and a raft of class-action lawsuits filed by VW owners.

'Screwed up'

 

[Spinster]

Volkswagen rotating staff to improve oversight...

Volkswagen to 'rotate staff' to improve oversight
20 Dec.`15 - German car giant Volkswagen, scrambling to contain a massive pollution test cheating scandal, said Sunday it would begin rotating staff to keep better tabs on its operations.

Employees in key roles will switch jobs more often than is currently the case, VW supervisory board chief Hans Dieter Poetsch said in an interview with the Welt am Sonntag newspaper. "The relevant employees will only stay a certain amount of time in a specific job and then change," he was quoted as saying. He said the new personnel plan was intended to break up long-standing structures that allowed rules to be broken in secret. Poetsch said the scheme would be introduced along with new oversight mechanisms. "We will bolster checks, determine responsibilities in a clearer way and better implement technical supervision of procedures," he said.

Poetsch added that the "four-eyes principle" of at least two people being involved in key work would become a company watchword. He admitted that some positions were so specialised that frequent rotation could pose challenges. But he said that such jobs could be filled within the Volkswagen group, with people switching, for example, from Audi to Porsche to the VW brand manufacturing divisions. Volkswagen was plunged into its deepest-ever scandal in September, when it was forced to admit it had installed emissions cheating software into 11 million diesel engine vehicles worldwide.

VW was found to have used so-called "defeat devices" that activate emissions controls during testing, then turn them off under normal operations, allowing illegal amounts of nitrogen oxide to spew into the air. The costs facing VW, once seen as the paragon of German industry, are still incalculable, in terms of reputation and global earnings and because it faces billions in possible fines and legal costs. Chief executive Martin Winterkorn resigned in the wake of the allegations but insisted he knew nothing about the scam.

Volkswagen to 'rotate staff' to improve oversight

Oversight?? You mean getting caught, right?

 

[waltky]

New catalytic converter could fix emissions cheating scandal...

VW CEO says new catalytic converter could fix U.S. cars
Sun Jan 10, 2016 - Volkswagen AG (VOWG_p.DE) will propose to U.S. authorities a new catalytic converter system that could be fitted to about 430,000 cars capable of cheating diesel emissions tests, Chief Executive Matthias Mueller said on Sunday.

"We have one (catalytic converter) in the works and we believe that will be a part of the technical solutions," Mueller told reporters at a VW event on the eve of the Detroit auto show. Asked whether he expects the new catalytic converter to bring 430,000 rigged U.S. cars into line with emissions standards, the CEO replied: "Yes, we believe that this is possible." Mueller is meeting U.S. Environmental Protection Agency (EPA) administrator Gina McCarthy on Wednesday, where he plans to make his proposal.

Mueller expressed optimism that VW and the EPA would be able to bridge their differences. McCarthy has previously bemoaned that both sides have failed to develop "a satisfactory way forward" despite months of talks. "I think we can now offer a package that will come very close to what the EPA is expecting from us," the CEO said.Part of the proposal will be an offer by the German company to repurchase some of the affected U.S. cars, said Mueller, but declined to elaborate. Germany's Sueddeutsche Zeitung newspaper last week said‎ VW may need to buy back around 115,000 U.S. vehicles. "We will offer some solutions and we will see how the reaction (from the EPA) will be," said Mueller. "‎We are confident that we will find a good solution." Former Porsche CEO Mueller, who took the helm of Europe's largest automaker on Sept. 25, said he will meet "a lot of people" in Washington on Wednesday without giving names, adding that he would also be willing to testify before U.S. Congress on the emissions scandal, if asked.

Mueller, on his first visit to the United States since taking the top job at VW, cited differences between Germany's data protection code and comparable U.S. rules when asked to comment on accusations by U.S. state attorneys that VW was shielding documents from investigations. He said VW made a "huge mistake" by cheating U.S. emissions tests and any steps by the carmaker to overcome the crisis must include efforts to "better understand" the U.S. market, the world's second-largest. Asked whether he was worried about the possibility of U.S. criminal investigations, he said: "If that was the case, then yes."

VW CEO says new catalytic converter could fix U.S. cars

 

[waltky]

John Edwards goin' after Volkswagen...

Ex-Politician John Edwards Among Lawyers Vying for Lead Role in Volkswagen Suit
January 12, 2016 - Among the more than 140 plaintiffs' lawyers competing to lead private litigation against Volkswagen over its emissions cheating scandal is former U.S. Senator and Democratic Vice-Presidential candidate John Edwards.

Edwards, who was a trial lawyer in North Carolina before his political career was felled by a sex scandal, sent a letter to U.S. District Judge Charles Breyer of San Francisco last Friday, asking to be appointed to the powerful plaintiffs' steering committee. "This case has ingredients I've spent my life working on," Edwards told Reuters in an interview on Monday. The litigation against Volkswagen, he said, requires trial expertise, regulatory know-how and a global perspective. In his letter, Edwards highlighted his acquaintance with foreign heads of state, including German Chancellor Angela Merkel. His work with international leaders, he said, gives him "a deep understanding of the global impact" of cases like Volkswagen's. A Volkswagen representative did not immediately respond to an email request for comment.

Plaintiffs lawyers view the Volkswagen case as a potential goldmine. The litigation in San Francisco is a consolidation of hundreds of class actions filed on behalf of more than 500,000 owners and lease-holders of Volkswagen diesel vehicles. Lawyers for individual car owners have said their clients expect the automaker to repurchase cars allegedly marketed with false claims about toxic emissions and fuel efficiency. They have also said they will seek punitive damages against Volkswagen, which has admitted that it installed software to allow 580,000 vehicles to emit up to 40 times legally allowable pollution. An appointment as lead counsel or as a member of the steering committee means the lawyer's firm will play a key strategic role in the case. Lead lawyers typically have a say in how court-awarded legal fees are divided among plaintiffs firms. Edwards returned to the practice of law in 2013 after a federal jury in North Carolina acquitted him of accepting illegal campaign contributions. Edwards had been charged in 2011 in connection with nearly $1 million in contributions that were allegedly intended to cover up an extramarital affair he conducted while he was running for president in 2008.

The jury did not reach a verdict on all charges at Edwards' 2012 trial but the Justice Department dropped remaining counts. Edwards' firm, Edwards Kirby, has offices in North Carolina, California and Washington, D.C., and handles mostly high-profile North Carolina wrongful death lawsuits, he said. Edwards has been involved in a New York federal antitrust lawsuit over alleged manipulation of a benchmark for crude oil prices and was scheduled to try a 2015 bellwether case against C.R. Bard in the consolidated litigation over transvaginal mesh. That case settled before trial. His Volkswagen lead counsel application acknowledged his dearth of experience in running enormous class actions like this case, and noted that "other applicants have significantly more." Other well-known lawyers seeking to join the VW steering committee include David Boies, who has represented same-sex couples, Presidential candidate Al Gore and the now-defunct music file-sharing service Napster at the U.S.

Other well-known lawyers seeking to join the VW steering committee include David Boies, who has represented same-sex couples, Presidential candidate Al Gore and the now-defunct music file-sharing service Napster at the U.S. Supreme Court. Boies was appointed in 2015 to serve on the steering committee in litigation over General Motors' ignition switch defect and Takata Corp's allegedly defective airbags. Many of the lawyers who submitted applications to lead the Volkswagen litigation have previously run big-ticket cases. Among them are the chief plaintiffs' negotiator in BP PLC's $5 billion settlement of claims from the 2010 Deepwater Horizon oil spill, lawyers who led a $1.1 billion case against Toyota Motor Corp over an alleged sudden acceleration defect, and plaintiffs' counsel in several antitrust class actions that have ended with settlements of hundreds of millions of dollars.

Potential goldmine

 

[waltky]

Might be a good time to buy VW stock on the cheap...

Volkswagen profit tumbles as sales fall
Tue, 31 May 2016 - Volkswagen profit tumbles 20% in the first three months of 2016 as it continues to grapple with the diesel emissions scandal.

Pre-tax profit fell to €3.2bn (£2.4bn) in the first quarter, down from €3.97bn in the same period a year ago. Chief executive Matthias Mueller said he was "satisfied" with the start of "what will undoubtedly be a demanding" 2016. VW admitted last year that it installed software to cheat US emissions tests. It has already set aside more than €16bn to pay for costs arising from the scandal.

The German giant has agreed a deal with the US Department of Justice in which it will buy back and "substantially" compensate more than 500,000 American owners of its diesel cars affected by the emissions cheating. Final details are expected in June. "In the first quarter, we once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions," Mr Mueller added.

Outlook

Group sales revenue fell 3.4% to €51bn in the period. VW maintained its forecast of a 5% fall in 2016 sales revenue compared with last year, "depending on economic conditions - particularly in South America and Russia - and exchange rate developments as well as against the backdrop of the diesel issue".

However, it predicted "a marked decrease in sales revenue" for 2016 for its passenger car brands, which include Audi, Seat and Skoda. "2016 will be a transitional year for Volkswagen... we remain confident that our operating business will again record solid growth this year," Mr Mueller added. VW shares fell 1.5% lower in early trading in Frankfurt.

Volkswagen profit tumbles as sales fall - BBC News

 

[waltky]

Granny says, "Dat's right - dey need to go back to buildin' the Beetle bug...

Volkswagen group to phase out more than 40 car models: report
June 18, 2016 - Volkswagen will stop producing more than 40 car models in the coming years as part of a new strategy by Europe's biggest automaker, German newspaper Handelsblatt reported on Saturday.

Volkswagen (VW) said on Thursday it would invest billions of euros in electric cars, ride-hailing and automated driving to become a world leader in green transport by 2025 as it reshapes its business following a diesel emissions scandal.

Workers from the SEAT factory, under the Volkswagen group, work on an engine of a SEAT Leon car, in Martorell near Barcelona​

Citing company sources, Handelsblatt said the overhaul would also involve ceasing production of more than 40 models. Volkswagen currently makes about 340 car models across its portfolio, which includes brands such as Audi, Skoda and Seat.

Emblems of VW Golf VII car are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg​

A Volkswagen spokesman said, however, the number of models that would be discontinued had not been decided yet. "A decision on how many models will be phased out or ceased has not been taken yet," he said.

Volkswagen group to phase out more than 40 car models: report

 

[waltky]

Uh-oh...

VW emissions-cheating deal could put employees in hot seat
Jan 11,`17 -- The imminent criminal plea deal between Volkswagen and U.S. prosecutors in an emissions-cheating scandal could be bad news for one group of people: VW employees who had a role in the deceit or subsequent cover-up.

VW on Tuesday disclosed that it is in advanced talks to settle the criminal case by pleading guilty to unspecified charges and paying $4.3 billion in criminal and civil fines, a sum far larger than any recent case involving the auto industry. It's likely that VW will agree to cooperate in the probe, turning over documents and other information, said David M. Uhlmann, a former chief of the Justice Department's Environmental Crimes Section who is now a University of Michigan law professor. "Companies often face the dilemma of whether to protect their employees or cooperate with government investigations, but almost always end up deciding in the company's best interest to share what information they have," Uhlmann said.

Although VW's communications with lawyers may be exempt, emails between employees and company executives should help prosecutors reach as far up VW's organizational chart as the scandal went, he said. Prosecutors now have three witnesses giving them information and have arrested Oliver Schmidt, VW's former head of U.S. environmental compliance who dealt with the EPA and California Air Resources Board after the scandal was uncovered. The cooperation of witnesses and the company should help investigators determine if the scandal went beyond VW's engineers, Uhlmann said. But extraditing any executives from Germany would be a problem. Volkswagen has admitted equipping diesel cars with sophisticated software that turned on emissions controls when engines were being tested by the Environmental Protection Agency, then turned them off during normal driving. The software, called a "defeat device" because it defeated the emissions controls, improved engine performance but spewed out harmful nitrogen oxide at up to 40 times above the legal limit.

A Volkswagen Touareg diesel is tested in the Environmental Protection Agency's cold temperature test facility in Ann Arbor, Mich. The imminent criminal plea deal between Volkswagen and U.S. prosecutors in an emissions-cheating scandal could be bad news for one group of people: VW employees who had a role in the deceit or subsequent cover-up. VW on Tuesday, Jan. 10, 2017, disclosed that it is in advanced talks to settle the criminal case by pleading guilty to unspecified charges and paying $4.3 billion in criminal and civil fines, a sum far larger than any recent case involving the auto industry.​

Volkswagen has reached a $15 billion civil settlement with environmental authorities and car owners in the U.S. under which it agreed to buy back up to 500,000 vehicles. The company also faces an investor lawsuit and criminal probe in Germany. In all, some 11 million vehicles worldwide were equipped with the software. The criminal investigation likely will continue into the administration of President-elect Donald Trump and attorney general nominee Sen. Jeff Sessions. Uhlmann, who served under Republican and Democratic attorneys general, doesn't think the new administration will back off from the VW prosecution. "All administrations want to be tough on crime, including corporate crime," he said. "I doubt the Trump administration will be any different."

A draft of the VW settlement with the government calls for the appointment of an independent monitor to oversee compliance and control measures for three years. The draft still must be approved by Volkswagen's boards and U.S. courts. The scandal was revealed in September 2015, when West Virginia University tested on-road diesel emissions. The EPA issued a notice of violation, and VW apologized and brought in U.S. law firm Jones Day to investigate. If finalized, a $4.3 billion settlement would eclipse Toyota's $1.2 billion penalty over unintended acceleration problems as well as General Motors' $900 million payment to resolve a deadly ignition-switch scandal.

News from The Associated Press