One of Volkswagen’s main goals at the International Motor Show, held in Geneva from March 3 – 16, is keeping and rebuilding customers’ trust. According to reporter David Pollard, VW’s emissions scandal is a big topic, drawing fire even from the CEOs of VW’s rivals. VW claims former CEO may have ignored 2014 diesel warnings.
One of Volkswagen’s main goals at the International Motor Show, held in Geneva from March 3 – 16, is keeping and rebuilding customers’ trust. According to reporter David Pollard, VW’s emissions scandal is a big topic, drawing fire even from the CEOs of VW’s rivals. VW claims former CEO may have ignored 2014 diesel warnings.
The uncertainty over whether VW’s former CEO, Martin Winterkorn, may or may not have known of the emissions cheats is doing nothing to help rebuild the German automaker’s reputation or customers’ faith in the company’s ability to produce quality vehicles.
According to records, Winterkorn was made aware of the problems with U.S. diesel emissions tests as early as 2014, but VW now says that this issue “did not initially receive particular attention at the management levels.”
The 2014 notice to Winterkorn was in the form of a memo regarding a U.S.-led study that questioned whether VW’s diesel vehicles were actually emitting more pollutants in “real-world driving” situations that in the standard government tests typically conducted.
The memo was part of what is being called Winterkorn’s “extensive weekend email,” according to Volkswagen. The company didn’t identify the sender of said email, nor did it say whether Winterkorn read the missive.
“Whether and to which extent Mr. Winterkorn took notice of this memo at that time is not documented.”
Yet another memo hit Winterkorn’s desk in November 2014, this one discussing the cost framework of the diesel issue in North America. A cost that, at the time, was estimated at 20M euros. Further, the former CEO was present at a July 2015 meeting during which emissions issues discussions figured prominently. No one can comment as to whether he was award of the software cheat at that meeting.
Last September, the company publicly announced that the “anomalous” emissions tests in the U.S. were the product of specially-designed software, the purpose of which was to skew emissions test results. This public admission accomplished at least three things:
- A loss in VW’s market value totaling billions of euros
- Investigations and lawsuits worldwide
- Winterkorn’s resignation
A company statement said, “Volkswagen expressly regrets that, looking back, the situation is different.” One feels this is an odd statement. Does VW regret that it cheated? Does it regret the loss in market value? Does it regret the investigations and lawsuits? Does it regret Winterkorn’s resignation? Or, does it simply regret getting caught cheating?
VW officials have been extremely busy in the last several months. The company is involved in intensive settlement discussions with the U.S. Justice Department as well as U.S. clean air regulators. It’s also facing a March 24 (tick-tock goes the clock!) deadline to present an acceptable fix for about 600K diesel vehicles to a federal judge.
Volkswagen is also preparing for the onslaught of lawsuits headed its way, alleging that the company took too long to tell investors about the cheating. Already, there are dozens of suits filed with the German regional court in Brunswick, in which investors are angry because VW waited three weeks to tell them of the problem (ultimately, a huge hit to dividends) after it came clean with U.S. authorities.
U.S. law firm Jones Day has been appointed by VW to investigate the officials responsible for the company’s biggest scandal since it opened for business. Last week, VW also hired a German law firm to provide legal advice on potential liabilities the company faces as a result of its emissions cheating.
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