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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.

Which will Dieselgate hurt more, Volkswagen or US diesels?

The most damning response to the news Volkswagen skirted emissions regulations for its diesel models may have actually come from the Los Angeles Times. On Saturday, the Times published an editorial titled "Did Volkswagen cheat?" The answer was undoubtedly yes. When you can't drive down Santa Monica Boulevard without seeing an average of one VW TDI per block, the following words are pretty striking: "... Americans should be outraged at the company's cynical and deliberate efforts to violate one of this country's most important environmental laws." VW has successfully cultivated a strong, environmentally conscious reputation for its TDI Clean Diesel technology, especially in states where emissions are strictly controlled. A statement like that is like blood all over the opinion section of the Sunday paper. The effect on VW's business, even Germany's financial health, was already felt Monday when the company's shares plummeted 23 percent in morning trading. The statement on Sunday from VW CEO Dr. Martin Winterkorn says "trust" three times. That probably wasn't enough in nine sentences. Writers over the weekend have compared VW's crisis to one at General Motors 30 years ago, when it was the largest seller of diesel-powered passenger cars until warranty claims over an inadequate design and ill-informed technicians effectively pulled the plug on the technology at GM. In a sense, VW is in the same boat as GM because it has fired a huge blow into its own reputation and that of diesels in passenger cars. And just as automakers like Jaguar Land Rover, BMW and, ironically, GM, were getting comfortable with it again in the US. VW of America was already knee-deep in its other problems this year. Its core Jetta and Passat models are aging and it needs to wait more than a year for competitive SUVs that American buyers want. The TDIs were the only continuous bright spot in the line and on the sales charts. Even as fuel prices fell and buyers shunned hybrids, VW managed to succeed with diesels and show that Americans actually care about and accept the technology again. Fervent TDI supporters might actually lobby for that maximum $18 billion fine to VW. I've personally convinced a number of people to look at a TDI instead of a hybrid. Perhaps not so much for stop-and-go traffic, but I know buyers who liked the idea that a TDI drove like a normal car and wasn't packed with batteries.

Porsche hybrids come up short at Le Mans

Two cars, one finish, zero victories. That's a brief synopsis of Porsche's hybrid-vehicle performance in the 24 Hours of Le Mans race in France. There's always next year. Porsche entered two 919 Hybrid vehicles in the race. The No. 14 car essentially limped to the finish line after encountering drivetrain problems. The other Porsche hybrid, No. 20, was driven by Germany's Timo Bernhard, New Zealand's Brendon Hartley and Australia's Mark Webber. That car ran for more than 22 hours before its own powertrain issues did that racing team in for good. Both vehicles ran towards the front of the pack at times during the race, and the No. 20 car actually led the race after about 20 hours. Still, both teams said they were disappointed in the results. Porsche sister company Audi came up big for the 13th time in the race's long and storied history. One Audi R18 E-Tron Quattro won the race, while another finished second. The Toyota that had pole-position and was winning much of the race shut down after 15 hours of racing because of electrical issues and Nissan had trouble with is ZEOD RC. Check out Porsche's press release below, and read here for a more general race recap. STRONG PERFORMANCE BY PORSCHE 919 HYBRIDS BUT NO DREAM ENDING IN PROTOTYPE RETURN TO LE MANS Le Mans. After a strong performance by both Porsche 919 Hybrids, the Porsche Team was left empty-handed after a dramatic final stage of the race. Following more than 22 hours, car No. 20 driven by Timo Bernhard (Germany), Brendon Hartley (New Zealand) and Mark Webber (Australia) suffered a powertrain problem at the world's most famous endurance race, the 24 Hours of Le Mans. Earlier in the race the LMP1 class car was leading overall for a significant period of time. The second innovative and highly complex prototype – in the hands of Romain Dumas (France), Neel Jani (Switzerland) and Marc Lieb (Germany) – likewise proved to be very competitive, but was hampered by a drivetrain problem. However, their No. 14 car crossed the finish line under its own power. After a thrilling start to the race with changing weather conditions, numerous accidents and a relatively calm night, Bernhard took the overall lead in the No. 20. The longtime Porsche factory driver returned to the top spot after 20 of the 24 hours. At 12:36 (CET) on Sunday, he handed the leading car over to Webber. Less than 20 minutes later the Australian was forced to slow down and drove solely on electric power back to pit lane.