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German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.

VW recalls 25k Jettas over low-beam headlight issue

Volkswagen has discovered an issue with the headlamps on its latest Jetta and is issuing a recall notice in conjunction with the National Highway Traffic Safety Administration to correct the issue. The problem revolves around the headlight control module, which has been found in certain instances to switch off the low-beam headlights when the high beams are turned on. Needless to say, that could result in insufficient illumination in the dark, so VW is moving to update the module's software. The issue only affects the new 2015 Jetta – specifically those manufactured between July 11, 2014 (which just happens to be this writer's birthday, thank you very much) and November 13, 2014. All in all, the Volkswagen Group of America estimates that encompasses 25,007 units in the United States, the owners of which can expect to hear from their dealers in the new year. RECALL Subject : Insufficient Headlight Output Report Receipt Date: DEC 15, 2014 NHTSA Campaign Number: 14V790000 Component(s): EXTERIOR LIGHTING Potential Number of Units Affected: 25,007 All Products Associated with this Recall close VOLKSWAGEN JETTA 2015 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Jetta vehicles manufactured July 11, 2014, to November 13, 2014. Due to incorrect software within the headlight control module, the low beam headlights may turn off when high beam lights are turned on. As a result, the light output from the headlights may be insufficient. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108. "Lamps, Reflective Devices, and Associated Equipment." CONSEQUENCE: Insufficient headlight output may increase the risk of a crash. REMEDY: Volkswagen will notify owners, and dealers will update the headlight control module software, free of charge. The recall is expected to begin in January 2015. Owners may contact Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 57F6. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Matthias Muller officially named VW Group CEO

While the vast number of rumors made it seem like a foregone conclusion, Porsche boss Matthias Muller has officially been named Volkswagen Group CEO to replace the recently resigned Martin Winterkorn. His contract runs through the end of February 2020, and until a replacement is found, Muller also gets to hang onto his old job as chairman of Porsche. At the same time, the VW Group Supervisory Board is announcing a massive structural reorganization across the entire company, with the new management model in place by the beginning of 2016. Contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. The board wants a greater emphasis on brands and regions going forward, and the scale of this shift can be seen in the US. On November 1, VW Group business in the US, Mexico, and Canada is being combined under the leadership of current Skoda chairman Winfried Vahland. However contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. Other brands are also seeing some significant changes mechanically. Porsche, Bentley, and Bugatti now fall under the Group's "sportscar and mid-engine toolkit." This means that the brands will start sharing standardized technical parts. A Chief Technical Officer across all of the company's brands will also start working toward future innovations. The new brand-centric view means the end of a group-wide production department. "Going forward, the brands and regions will also have greater independence with regard to production. So it follows that they should also hold the responsibility for these activities," Berthold Huber, interim Chairman of the Supervisory Board, said in the announcement. In a statement with the press release about his promotion, Muller promised to turn the company around after such an international crisis. He said: "My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." Matthias Muller appointed CEO of the Volkswagen Group Muller remains Chairman of Porsche AG until a successor has been found Matthias Muller (62) has been appointed CEO of Volkswagen AG with immediate effect.