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VW diesel incentives could be fuel for prosecutors

In the 2000s, Volkswagen was among the companies that lobbied the government to get buyers of diesel vehicles a tax credit. The automaker even brought some of these models to Washington to show them to politicians. The incentive eventually passed, and about 39,500 customers of the 2009 Jetta TDI and Jetta SportWagen TDI got a $1,300 benefit – for a total cost of around $51 million. Now, according to Reuters, that politicking might come back to bite the automaker when prosecutors finally get cases to trial. The US Department of Justice, the Environmental Protection Agency, and attorneys general in at least 29 states are already investigating VW, and politicians are pushing for criminal and civil actions against the company. According to Reuters, there could be several legal routes available, too. One option is to bring tax fraud charges, and that would require proving the automaker knew it was making untrue claims about the diesel models. There's also the option of bringing a case under the False Claims Act, which prohibits fraud against the government. According to Reuters, a maximum penalty under the law would be three times the tax credit and another $5,000 for each vehicle that received it. The company is also facing a class-action lawsuit from disgruntled owners. To aid its defense against all of these claims, VW has hired the same firm that worked with BP during the Deepwater Horizon oil spill. Outside of the US, prosecutors in Germany have just started to build a case against former CEO Martin Winterkorn for alleged fraud. In addition to these potential legal penalties, VW could be fined around $18 billion by the EPA for the emissions infractions. The agency's investigation is getting the added backing of its Canadian counterpart. Although, the actual settlement is expected to be far less.

Auto execs surveyed say VW, BMW most likely to grow

A new survey of top global automotive executives indicates both Volkswagen and BMW are the most likely to grow their market share over the next five years.
Tax advisory firm KPMG LLP has released its 14th annual Global Automotive Executive Survey, which includes responses from over 200 executives. A total of 81 percent of respondents said they expect to see Volkswagen make gains, compared to 70 percent last year. BMW, meanwhile, saw 70 percent of those surveyed say they believe the company will increase its market share. That's a jump of 7 percentage points over last year. This is the first time in the history of the survey that BMW has claimed the second-place spot.
Meanwhile, Hyundai has seen its perceived market share potential slacken for the third year in a row. Around 61 percent of those surveyed predicted gains for Hyundai, down from 63 in 2012. Toyota also has a surprising year, but for just the opposite reason. While the manufacturer had slipped in ranking since 2011, it enjoyed the largest increase of any company in the 2013 survey, jumping to 68 percent from 44 percent last year.

VW worker killed in robot accident

A 21-year-old worker died from injuries after being struck by the robot that he was installing at Volkswagen's factory in Kassel, Germany. According to The Financial Times, the man was inside the safety cage surrounding the machine when he was hit in the chest and pressed against a metal plate. Emergency crews took him to a local hospital, where he died. That man's name hasn't been released, but he was reportedly a third-party contractor, rather than a direct employee of VW. A second person was also installing the robot when the accident happened. This individual was farther away and wasn't harmed, according to The Financial Times. The local newspaper reported that the incident took place in a part of the plant used for producing electric motors. The local prosecutor has opened an investigation into whether there was any negligence involved. According to Volkswagen, the Kassel factory is one of its main hubs of transmission production and employs around 15,500 people. The motors and batteries for the e-Up and e-Golf are also made there. In 2008, VW built its one-millionth DSG gearbox at the plant. Related Video: