[Amartya]

An article worth your time, it discusses how systematically VW (and this case Daimler and BMW) went about proselytizing diesel over petrol: Inside VW's Campaign for Clean Diesel
A couple of pull quotes from the article:

Just as the tobacco companies promoted nicotine addiction, Ms. Douglas said, the carmakers lobbied for tax breaks that made European drivers dependent on diesel.

The toll on public health has become impossible to ignore. In 2012, 72,000 people in Europe died prematurely because of nitrogen dioxide pollution, which comes primarily from diesel vehicles

[Moto_Hill]

Dirty Money - An investigative documentary, available on Netflix, covers VW emission scandal in its first episode called “Hard Nox”

Gonna watch it in coming weekend.

[avira_tk]

Porsche has decided to do away with diesel on the Cayenne and the Panamera, a fallout of the new investigation into the 3 litre diesels and tougher norms coming up worldwide.

[sarathlal]

Auto manufacturer Volkswagen (VW) settled the first of many lawsuits related to the company’s diesel emissions scandal, just before the case was to go on trial this week.

North Carolina resident David Doar had filed the lawsuit against Volkswagen, joining numerous other VW owners in the US that are also suing the company in relation to an emissions scandal. He had sued VW over fraud and unfair trade practice claims, seeking punitive damages as well as compensation for his vehicle.

Source

[volkman10]

It’s been three years since news about Volkswagen’s emissions-cheating diesels broke.

If still you have not understood the entire scandal, the video below explains how VW’s devices managed to get past the Environmental Protection Agency’s (EPA) testing.

https://www.youtube.com/watch?v=glHNu91zUdA

[volkman10]

VW's update on the 'dieselgate' status,

[mazda4life]

This reuters report gives an enormity of the problem that the diesel gate has given the honchos at VW sleepless nights
https://www.reuters.com/article/us-v...-idUSKBN1H50GQ

[Joxster]

VW Group to replace Mueller with Diess as CEO, sources say

Volkswagen Group is planning to replace CEO Matthias Mueller with Herbert Diess, the head of the namesake brand, people familiar with the matter said.

The change will be discussed at a supervisory board meeting on Friday, said the people, who asked not to be identified speaking ahead of an official announcement.

A VW spokesman could not immediately be reached for comment.

VW said in a statement on Tuesday that Chairman Hans Dieter Poetsch is currently in discussions with top executives and supervisory board members about management board changes and that Mueller, 64, has "showed his general willingness to contribute to the changes."

The release did not provide any specifics.

In tapping Diess for the top job, Volkswagen would elevate a senior executive from its own ranks, while at the same time relying on a relative outsider to run the company.

Diess joined VW from BMW Group in mid-2015, months before the diesel crisis erupted. As the executive overseeing VW's biggest unit, he routinely butted heads with the powerful labor union as he sought to cut costs and simplify the carmaker's structure.

Diess's potential promotion would be good for VW, one analyst said.

"We believe that if Diess is confirmed as the successor, VW shares will extend their gains. Investors will like his strong execution track record and his understanding of mobility 2.0," Evercore ISI analyst Arndt Ellinghorst said in a note to investors. "Put simply, we see no better alternative to Matthias Mueller to make the company fit for the future by dealing with some of the legacy businesses as well as making the right investments in future technologies."

Ellinghorst added that he expects Diess would keep his job as CEO of the VW brand while also overseeing the VW Group.

In the aftermath of the diesel-cheating scandal, VW has been pushing to overhaul its rigid top-down management structure, delegating more responsibility to its brand and regional chiefs. Its complex structure has extended to its main shareholder, Porsche Automobil Holding, where VW's chairman serves as the CEO and Mueller also serves as a top executive. Porsche said separately any changes at VW would have a knock-on effect for it.

Including Mueller, VW's management board totals nine people, with responsibilities ranging from purchasing to legal affairs to financing and human resources. Meanwhile, Audi, the VW brand, the trucks division and the group's Chinese operations also have representatives on VW's top executive body.

"It is currently open whether the considerations and discussions will lead to a further development of the management structure or to personnel changes," VW said in the statement.

Representatives of Porsche and the German state of Lower Saxony, VW's two largest shareholders, weren't immediately available for comment.

Source

Cheers

[Joxster]

Matthias Mueller's abrupt exit heralds sweeping change to come at VW.

Volkswagen AG's board abruptly ended the tenure of CEO Matthias Mueller, a caretaker who revived the carmaker after its worst crisis on record, turning instead to a leader who can implement deeper changes, people familiar with the matter said.

Key stakeholders came to the conclusion they couldn't afford to wait two years until Mueller's contract expired to appoint a fresh CEO, as they deliberated an overhaul that will likely include a partial IPO of the heavy trucks division and how best to rapidly implement those changes, said the people, asking not to be identified discussing the private talks.

The 64-year-old Mueller, a reluctant CEO who had grown weary of the regular grillings by board members, responded during the talks by signaling he was prepared to step aside, they said. With Mueller agreeing to go, the controlling Porsche-Piech clan, the state of Lower Saxony and powerful labor leaders quickly settled on Herbert Diess, chief of the namesake brand, as the successor, ruling out other top executives such as the CFO, the heavy-trucks chief and Porsche CEO, the people said.

None of these behind-the-scenes deliberations were apparent from VW's surprise release that was as short as it was cryptic when it landed on Tuesday afternoon. Mueller had signaled his "general willingness to contribute to the changes,'' the statement read, and that the board was considering changes that included the position of the CEO. It didn't identify Diess as a possible successor, and the company declined to comment further.

In tapping the 59-year-old Diess for the top job, Volkswagen would elevate a senior executive from its own ranks, while handing the reins to someone who was not at the automaker when the diesel cheating began. Diess joined VW from German rival BMW AG in mid-2015, shortly before the scandal erupted publicly. As the executive overseeing VW's biggest unit, he has routinely butted heads with labor leaders while seeking to cut costs and simplify the carmaker's byzantine structure. He was selected in fact for his ability to push through changes at the VW brand that boosted profitability and ultimately saved jobs, the people said.

VW's statement didn't specify whether the planned changes meant replacing Mueller or simply a shift in responsibilities. It said Chairman Hans Dieter Poetsch will spearhead the transition, and that there is no certainty that personnel changes will in fact occur.

The supervisory board will meet on Friday to discuss and likely sign off on the management reshuffling and other proposals, the people said.

Under Mueller -- who was talked into taking the top job in the chaotic days following the public disclosure of the diesel cheating -- VW has weathered the blows from the scandal while embarking on an aggressive expansion into electric cars. Its profit margin climbed to 7.4 percent of sales last year from 6 percent in 2015, when the crisis hit. The carmaker also managed to fend off Toyota Motor Corp. to retain its status as the world's largest automaker.

In the aftermath of the diesel-cheating scandal, Mueller sought to overhaul Volkswagen's rigid top-down management structure, delegating more responsibility to its brand and regional chiefs. The complexity extends to its main shareholder, Porsche Automobil Holding SE, where Poetsch works as the CEO and Mueller as a top executive. Porsche said in a separate release that any changes at VW would be reflected in its management.

Including Mueller, VW's management board totals nine people, with responsibilities ranging from purchasing to legal affairs to financing and human resources. Audi, the VW brand, the trucks division, and the group's Chinese operations also have representatives on Volkswagen's top executive body.

Publicly-listed companies in Germany have two management structures: one consisting of the management board around the CEO and a supervisory board that is made up half-half of labor representatives and members of the capital side to ensure even distribution of interests. Volkswagen is more complex than most of its peers, with the Porsche-Piech families de-facto controlling the manufacturer and the state of Lower-Saxony -- home to the company's headquarters and VW's main factory -- owning 20 percent.

While Mueller is a lifelong VW veteran, at times he cut an uneasy figure in the top job, which required him to manage the often contradictory demands of angry car owners, disgruntled investors, well organized workers, and state officials with their own political agendas.

Tensions flared in recent weeks between Mueller and Lower Saxony's leadership, which is represented on the supervisory board. Mueller told German magazine Der Spiegel in March that he "doesn't like politicians meddling with my business," likening a discussion about a salary cap for executives to the oppressive system of the former German Democratic Republic. Mueller's total compensation was more than 10 million euros last year.

Mueller's comments exhibited "a lack of sensitivity at a difficult time for VW," Lower Saxony's economic minister Bernd Althusmann, who also sits on VW's supervisory board, told German daily Hannoversche Allgemeine Zeitung. Lower Saxony played a key role in pushing for Mueller's replacement, arguing that his public comments were not helping the automaker win friends, the people said.

Among other proposed changes, VW is also looking at replacing personnel director Karlheinz Blessing with Gunnar Kilian, a labor representative who is close to works council chief Bernd Osterloh, the people said.

Source

Cheers

[shashanka]

Well, one certainly hopes that all these internal gymnastics in the group will have the desired result - that the arrogance of their Teutonic mindset ("...this is the only way to make cars....") undergoes a paradigm change. That they come down to earth and once again set an example of how to make a people's car - without the cheating.

[shibujp]

In tapping the 59-year-old Diess for the top job, Volkswagen would elevate a senior executive from its own ranks, while handing the reins to someone who was not at the automaker when the diesel cheating began. Diess joined VW from German rival BMW AG in mid-2015, shortly before the scandal erupted publicly.

Not so sure about this after it has emerged that the consortium of German car companies have collaborated on more that a few controversial practices.

Drive on,
Shibu.

[volkman10]

German authorities to quiz firm on possible use of 'illegal defeat device' in seventh generation versions of the A6 and A7.

Audi has halted deliveries of seventh generation A6 and A7 models fitted with its V6 diesel engine after discovering “irregularities” in the unit’s management software.

The issue relates to the 268bhp V6 variant of the Gen2 evo engine that's used in the outgoing A6 and A7. The German transport ministry has now summoned Audi for a formal hearing about whether the units were fitted with a ‘defeat device’ to help the cars pass emissions tests.

Link

[Sn1p3r]

I am a skeptic and a cynic when it comes to juggernaut of the industry. There is too much at stake for the shareholder state and businesses never like being directed. It reflects poorly on Germans and so everything was swept under the rug. However, it seems no one learnt the lesson, internal politics and power struggle is quite evident. This also prepares workers for next stage of evolution (no one here is enthusiastic) of cars.

[neeld]

Audi CEO Rupert Stadler arrested in connection with the diesel-cheating scandal.

Live mint:

"Munich: Audi CEO Rupert Stadler was arrested in Munich on Monday in connection with the diesel-cheating scandal, making him the highest-profile target in the probe that’s engulfed the carmaker and parent Volkswagen for almost three years.
Munich prosecutors investigating Audi’s role in the 2015 scandal confirmed they arrested Stadler, 55, in the Bavarian capital because of risk he may tamper with evidence, according to an emailed statement Monday.
The decision throws into doubt the manager’s future at the helm of Volkswagen’s most important earnings contributor. Pressure on Stadler has steadily built over the past few months, including a raid at his home last week. Until now, backing of the Porsche and Piech families, who control the world’s biggest carmaker, ensured him continuing in the role he’s held since 2007.
Volkswagen’s supervisory board is meeting today, where Stadler’s future will be among the topics of discussion.
Prosecutors in Munich, Stuttgart and Braunschweig are continuing their investigations of the carmaker and its units. In April, Stuttgart authorities arrested a senior engine manager at the company’s luxury Porsche brand, after conducted raids at 10 sites as part of a long-running probe.
Wolfgang Hatz, a former VW manager who joined Audi unit in 2001 and from 2007 to 2011 ran VW’s motor development, remains in custody in Munich.
Volkswagen declined 2.2% to €157.88 and traded 2% lower at 11.50am in local trading, extending losses this year to 5.2%.
Nearly three years on from the scandal, VW faces a multitude of probes both in Germany and abroad, with legal proceedings in 55 countries pending and investigations into stock-market manipulation in its home market.
The company has earmarked more than €27 billion ($31 billion) in fines, buybacks and costs. Investors have accused the company of informing investors too late about the probe, a view the carmaker has contested.
Just last week, Volkswagen agreed to pay a 1 billion-euro fine imposed by German prosecutors for cheating to get around diesel-emissions regulations."

Source:

https://www.livemint.com/Companies/u...sion-case.html

[Joxster]

Bosch told to hand over emails in Volkswagen emissions suit

Robert Bosch must hand over emails in connection with lawsuits brought by investors against Porsche SE linked to Volkswagen Group's diesel scandal, a Stuttgart regional court ruled. Investors in two separate suits claimed that Porsche SE, which controls 52.2 percent of VW's voting rights, had not disclosed the financial risks of VW's emissions scandal quickly enough when it emerged in 2015. Their lawyers demanded that Bosch provide emails concerning its business with VW.

Bosch, which makes an engine control unit used by several top automakers including VW, had protested, saying it had the right to refuse to provide evidence. The Stuttgart court ruled on Friday that Bosch had no such right in this case. It said the emails showed Bosch acted in accordance with the law, which meant it could not argue that it risked incriminating itself by handing them over. Providing the emails would also not risk causing direct financial damage to the company or to anyone to whom it is accountable, it said. Nor could Bosch refuse based on its right to protect trade secrets, since manipulation of engine control software is illegal and therefore not protected by law.

Bosch said it would await the court's full written opinion and then consider how to respond. "The company reserves the right to file a legal challenge to protect the interests of Bosch," it said in a statement.

Preference shares in Porsche SE fell by more than 40 percent in the two weeks after the VW emissions scandal broke. They remain nearly 10 percent below their value prior to the news that VW had cheated on emissions tests.

Source

Cheers