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VW exec calls US ops a 'disaster'

Today in the Tell Us How You Really Feel file we have Bernd Osterloh, head of Volkswagen AG's Group Works Councils and member of the company's supervisory board, labeling the company's US operations "a disaster." Why? Because Osterloh believes VW of America doesn't have the models it needs to be competitive here, hasn't been decisive enough about its plans and German higher-ups still don't understand the US market.
In truth, the top labor rep at the German conglomerate is echoing sentiments we've heard from VWoA executives for years, and there's been the same commentary from dealers: Germany doesn't pay enough attention to what the US market really wants. Even ex-VWoA CEO Stefan Jacoby, who preceded the recently departed Jonathan Browning, said early in his tenure that one of his tasks was to get his German bosses to start delivering what the US market demanded. New CEO Michael Horn is saying much the same thing seven years later, telling Sky News that it has to increase "the speed at which we bring new models to the market and innovation to the market."
Osterloh wants to get "more models" here, including a pickup truck, but we'd wonder if the economics have changed from when Jacoby said they'd need to sell 100,000 per year to make money. Osterloh also wants a decision on where the CrossBlue will be built. Although it looked as if the Chatanooga, TN plant would get the call, the Puebla, Mexico plant is still in the running because of lower operating costs. No matter what happens right now, Osterloh thinks the situation won't get better for another two years when revamped models arrive, but at least the company can start taking the steps for a better US future.

Suspended VW exec Hackenberg resigns in wake of scandal

Ulrich Hackenberg, father of the innovative modular architecture that underpins many modern Volkswagen and Audi products and a 30 year veteran of the giant company, has resigned his position as the lead engineer for the entire Volkswagen Group as well as his seat on Audi's management board, reports Automotive News. The resignation closes out a two-month suspension while the investigation into VW's deceptive emissions practices continues.The resignation follows the admission by Audi that the 3.0-liter TDI V6 engine was also fitted with emissions-control defeating software, like some of its four-cylinder TDI counterparts. In turn, this lead to changes in Audi's management structure. AN reports that Matthias Muller, who has already taken over Martin Winterkorn's position as VW Group CEO, will also be named chairman of the Audi brand.Hackenberg's successor was named as part of this announcement. Stephan Knirsch, who has lead engine development at the Audi division, will assume Hackenberg's roles as both board member for Audi in charge of technical development, and as the head for technical development across the whole group.Related Video:

Texas sues VW over consumer protection, clean air violations

Texas has filed two suits against Volkswagen, charging that the automaker's emissions rigging violated state consumer protection laws and clean air standards. The lawsuit is part of a probe into the German automaker's diesel scandal being undertaken by 45 states and the District of Columbia. There are also over 250 class action suits that have been filed in US federal courts. Texas Attorney General Ken Paxton said Thursday that his state would seek restitution for consumers, and an injunction and civil penalties to prohibit future violations. Paxton, who himself has been indicted for securities fraud, said in a statement, "When companies willfully violate the public's trust, a penalty must be paid." Paxton said Texans purchased around 32,000 affected vehicles. There are about 49 authorized VW dealerships statewide. The Texas suit is asking for pollution fines of somewhere between $50 and $25,000 per vehicle (quite a spread, we know) for each day the vehicles were in use in the state. Volkswagen admitted in the middle of September that it installed devices designed to defeat government emissions tests on many Volkswagen and Audi diesel cars dating to model year 2009. Globally, 11 million VW group vehicles are affected. The automaker declined to comment to Bloomberg on the Texas lawsuit. Last month, Harris County, which includes Houston, filed a multimillion dollar lawsuit against VW, alleging the automaker contributed to air quality problems. You can find PDFs of the two state lawsuits here (the deceptive-practices case) and here (the environmental case). The AP contributed to this report. News Source: Bloomberg Government/Legal Green Volkswagen Diesel Vehicles vw diesel scandal lawsuit