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VW gets help from Daimler to deal with VW scandal

Volkswagen has hired Christine Hohmann-Dennhardt, a compliance officer, away from Daimler. Normally, this wouldn't be particularly big news. The reason you might care is summed up rather succinctly by Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, who said that Hohmann-Dennhardt is being tasked with helping the entire German automobile industry "clean up the collateral damage from the diesel deceit." Hohmann-Dennhardt had to be released early from her contract with Daimler in order to take on this difficult role with an inter-country rival. VW Chairman Hans Dieter Poetsch thanked "Daimler AG for agreeing to our request to the early termination of Dr. Hohmann-Dennhardt's contract." What makes this move even more interesting is that Daimler and Volkswagen have had a terse relationship in recent years due to the poaching of important employees from one side to the other. According to Bloomberg, Hohmann-Dennhardt's contract with Daimler had been secured through February of 2017, but with her early release, she will start her new role on VW's board of management in January of 2016. Daimler, for its part, released a statement suggesting the decision was made "in the interests of the good corporate governance of the German automotive industry." Prior to her employment at Daimler, Hohmann-Dennhardt served for 11 years as a judge. Reading between the lines, it seems VW's massive corporate scandal has rocked the German auto industry to its core. Enough so, in fact, that Daimler would be willing to let go of a highly talented and well-respected executive – the first woman ever appointed to the German automaker's board – who had served since there since 2011. Feel free to read through VW's entire statement, below. Related Video: Dr. Christine Hohmann-Dennhardt to move to Volkswagen AG in 2016 as Board Member for Integrity and Legal Affairs Daimler AG agrees to move of Board Member for Integrity and Legal Affairs to Volkswagen AG The Chairman of the Supervisory Board of Volkswagen AG, Hans Dieter Potsch, has requested the Chairman of the Supervisory Board of Daimler AG, Dr. Manfred Bischoff, to agree to the early termination of the contract with Dr. Christine Hohmann-Dennhardt, Member of the Board of Management of Daimler AG for Integrity and Legal Affairs, which runs until February 28, 2017. She is to join the Volkswagen Group as of January 1, 2016 as the Board Member for Integrity and Legal Affairs.

Audi prepping a flex-fuel A3 for Latin America

Volkswagen's Audi division hasn't fared well from its parent company's diesel-emissions scandal, especially in the US and Europe. In South America, though, Audi is set to unveil its first vehicle of the flex-fuel variety, according to Nseavoice. Perhaps the German automaker can earn some good karma down in the Southern Hemisphere. The model is the 2016 Audi A3, which is made in Audi's Brazil factory. The engine is a 1.4-liter variety, and it will be able to run on either conventional gasoline or ethanol, or a blend of both. The decision makes sense because ethanol is plentiful in Brazil since the government has long pushed for it and there's plenty of sugar-cane feedstock to produce the stuff. Audi can use all of the positive news it can get, especially in the wake of VW's diesel-emissions scandal. As many as 11 million VW and Audi diesels may have been fitted with software that cheats emissions-testing systems. One result from the scandal's proverbial shrapnel is that the Audi A3 TDI diesel was stripped of its 2010 Green Car of the Year Award by Green Car Journal. The decision marks the first time in the award's history that a winner was stripped of the honor. VW has a long history offering flex-fuel vehicles in Brazil. In 2003, the German automaker was the first to debut a flex-fuel engine, and within two years, VW's Brazil factories were making 300,000 flex-fuel vehicles annually. Other companies have since jumped into Brazil's flex-fuel fray, including Nissan and Honda.

Italian investigators search Lambo headquarters in VW probe

Italian investigators searched Lamborghini headquarters on Oct. 15 to look for evidence of managers' involvement in Volkswagen's emissions cheating. VW's main office in Verona was also inspected, according to Reuters. Lamborghini is owned by Volkswagen, and Lambo in turn is listed as the owner of VW Group Italia. Authorities wanted to find out if employees were conscious that the vehicles were skirting emissions rules. "It is one thing if I sell water and pretend it's wine, but if I sell water believing it is wine it's different." Verona chief prosecutor Mario Giulio Schinaia said to Reuters. Italian newspaper Gazetta del Sud reported that several managers in Italy were under investigation for alleged fraud. Prosecutors in Germany have also been rigorously investigating VW, and they recently staged a similar raid on the company's headquarters in Wolfsburg, Germany. The automaker reportedly turned over documents and other data relating to the software defeat device. Meanwhile, VW's internal investigation has turned up little wrongdoing, though a recent leak suggested otherwise, and at least 30 managers could have known about the defeat device. The automaker has disputed that figure. Volkswagen of America CEO Michael Horn testified before Congress that he believed only a few individuals were involved. The situation hasn't been easy on VW in the US, either. The Department of Justice has also been pursuing an investigation into the automaker. Plus, state attorneys general are filing lawsuits against the company for defrauding customers. VW has until Nov. 20 to explain a repair for the problem to the California Air Resources Board. Related Video:

Vahland leaving VW over dispute on how to run NA region

On November 1, Winfried Vahland was supposed to take over Volkswagen Group's recently created North American region that combines Canada, the US, and Mexico. But the longtime exec has instead decided to leave the automaker after a dispute over how to manage the new combined region. Vahland is currently the boss at Skoda, and in a statement about his departure the Czech company said: "Differing views on the organization of the new Group region have led to this decision; this decision is expressly not related to current events on the issue of diesel engines." Vahland is leaving at his own request, the announcement says. Vahland was appointed to run to North American region during VW's massive corporate shakeup on September 25. The decision was part of the automaker's plan to put a greater emphasis on regions and brands, rather than on centralized authority. According to Automotive News Europe citing a report from Germany's Auto Bild, Vahland was passed over for the CEO job, with Matthias Muller taking that position. Amidst the changes, Michael Horn remained at the helm of Volkswagen Group of America, reporting to the new regional boss. Vahland joined the automaker in 1990 and started running VW's operations in China in 2005. He became boss at Skoda in 2010. "In the last 25 years, Prof. Vahland made a great contribution to the company. We respect his decision and thank him for his exceptional performance," Muller said in the departure announcement. Prof. Dr. Winfried Vahland leaves Volkswagen Group 14.10.2015 Prof. Dr. Winfried Vahland leaves Volkswagen Group Mlada Boleslav, 14 October 2015 – After 25 years of successful work in Volkswagen Group, most recently as Chairman of SKODA, Prof. Dr. Winfried Vahland is leaving the company at his own request. Prof. Vahland will therefore not be taking up the position of overall responsibility for the North American Region (NAR). Differing views on the organisation of the new Group region have led to this decision; this decision is expressly not related to current events on the issue of diesel engines. Prof. Vahland began his work in Volkswagen Group in 1990. After holding several key positions at home and abroad, he took over Group responsibility as President and CEO of Volkswagen in China in 2005 and contributed significantly to the successful new direction of Volkswagen in China. He was appointed Chairman of the Board of Management of SKODA in 2010.

Winterkorn will leave remaining VW posts by end of the month

After stepping down as chief executive of the Volkswagen Group last month, Martin Winterkorn still retains a few key positions within and related to the German automaker. According to the latest reports, he's set to resign from those positions as well in the coming days. Aside from his former position as chairman of VW's executive board, Winterkorn has also served (and continues to serve at present) as chairman of the supervisory boards of Audi, truck manufacturer Scania (which is owned by VW), and the group's Truck & Bus division (of which Scania is part alongside Man). He's also the chief executive of Volkswagen's largest stakeholder Porsche SE, having taken up the position after the Porsche/Piech family enterprise acquired its majority stake in the group that also subsumed the sports car manufacturer. In what could prove a strong indicator of things to come, and according to the report from Reuters, Winterkorn was not present at a recent meeting of Audi's board. In his place, the meeting was presided over by deputy chairman Berthold Huber. The former labor leader also served as interim chairman of the VW board after Ferdinand Piech's departure but before CFO Hans Dieter Potsch was named to the post. The companies in question have yet to make any announcements regarding Winterkorn's remaining positions, or confirm the reports regarding his future. However parties close to the automaker and its owners reportedly expect the resignations from those positions to come as well before the end of the month, if not before the week is out. Related Video: News Source: ReutersImage Credit: JOERG KOCH/AFP/Getty Green Hirings/Firings/Layoffs Porsche Volkswagen Diesel Vehicles vw diesel scandal martin winterkorn Scania truck and bus gmbh

Leonardo DiCaprio buys rights to VW emissions scandal story

The smoke – proverbial or otherwise – has yet to clear from the Volkswagen diesel emissions scandal. But already they're negotiating over the book and even the movie rights to tell the story of the biggest debacle in the company's post-war history. The news revolves around Jack Ewing (no relation), European economics correspondent for the International New York Times. Ewing is preparing to write a book about the VW scandal. He's already sold the publishing rights to the as-yet untitled project to publishing house WW Norton & Company for a reported six-figure sum. Now movie producers are stepping in to buy the film rights to turn that book into a movie once it's finished. Paramount Pictures and Leonardo DiCaprio's production Appian Way have reportedly already acquired the movie rights. It remains unclear at this point, however, whether DiCaprio might act in the film as well as help produce it. His studio Appian Way produced several films in which Leo has starred in recent years, including The Aviator, Shutter Island, and The Wolf of Wall Street – but has also produced many movies without him. Of course, this isn't the first time DiCaprio has appeared on these pages. A longtime proponent of clean transportation, he was among the first Hollywood celebrities to drive a Prius, inspired the creation of the Fisker Karma, and partnered with Venturi to launch a Formula E electric racing team. It'd take some magic transformation to make DiCaprio look like Martin Winterkorn, or really any of the senior executives at Volkswagen. But whatever his involvement, we think The Wolf of Wolfsburg has a nice ring to it. Then again, so does Rolling Coal. News Source: ReutersImage Credit: Victoria Will/Invision/AP Celebrities Green TV/Movies Volkswagen Videos vw diesel scandal

Will a Phaeton EV rise from the VW Dieselgate ashes?

The Volkswagen diesel emissions scandal isn't even close to ending, but in a new announcement the automaker says it is working to rehabilitate its battered image a little bit. In a series of pledges, the German company is putting a serious emphasis on future electrification. Headlining this EV onslaught: the next-gen Phaeton will be fully battery powered. VW is still very light on details about its future flagship, and Tesla shouldn't be shaking in its boots yet. The automaker simply promises "a pure electric drive with long-distance capability, connectivity and next-generation assistance systems as well as an emotional design." According to insiders speaking to Autocar, the Phaeton potentially launches in 2020, and it might share a platform and powertrain with the production version of the Audi E-Tron Quattro concept. A new Phaeton was rumored to be nearly ready earlier this year, but the project was reportedly scrapped to cut costs. VW loses money making the current one, and sedan competes against other products, like the Audi A8. Perhaps the company sees this scandal as a perfect opportunity to revaluate the point of the vehicle. While the Phaeton EV will represent the top of VW's future lineup, electrification will appear further down the line, as well. The automaker will create a new platform called the MEB specifically for compact EVs. Promising ranges between 155 and 311 miles, the architecture will be offered across the VW Group brands and on "both passenger cars and light commercial vehicles." This electrification push will likely affect current models, too, thanks to further engineering of the MQB platform. VW wants the vehicles to support longer-range plug-in hybrids, mild hybrids, and EVs with 186 miles of distance. Since the architecture is already on sale, presumably these are the first vehicles to benefit from the new strategy. VOLKSWAGEN BRAND BOARD OF MANAGEMENT TAKES STRATEGIC DECISIONS Accelerated implementation of the efficiency program creates room for reorientation Streamlined processes leverage further cost-saving potential, including cuts in fixed costs Investments to be reduced by 1 billion euros per year compared with planning – combined with prioritization of projects for the future Product decisions formulated New Phaeton will be electric New Modular Electric Toolkit planned Wolfsburg,October 13, 2015 – The newly-formed Volkswagen Brand Board of Management took further strategic decisions at a special meeting. CEO Dr.

France may scrap diesel fuel subsidies in wake of VW scandal

Now that a particular German automaker has sneezed, it appears that French automotive subsidies will catch a cold. Count France among the growing legion of countries not happy about Volkswagen's admission that some of its diesel vehicles contain software that will artificially reduce emissions levels during testing. As a result, the French government is talking about reducing or eliminating diesel subsidies that make diesel fuel about 15 cents per liter (roughly 89 cents a gallon) cheaper than gas. The change would tax gas and diesel at the same rate. France may end the diesel tax credits as soon as the next fiscal year, Bloomberg News says, citing comments from French Environment Minister Segolene Royal this week. About two-thirds of the cars on France's roads are diesel, according to the CCFA, the French automaker association. In fact, diesels accounted for more than half of the new light-duty vehicles sold in Europe last year. That may drop to 35 percent by 2022 in part because of the scandal, according to automotive consultant LMC Automotive. Things could change even more France is considering letting more vehicles qualify for the 10,000-euro incentive for switching from old diesels to new plug-in vehicles. Last month, VW said that its cheater software might be installed in as many as 11 million vehicles, forcing the German automaker to set aside $7.3 billion to address the fallout from the scandal. Among other issues, VW and its Audi division were stripped of its Green Car of the Year Awards for the first time in the history of the awards bestowed by Green Car Journal. The scandal also forced Martin Winterkorn to resign as VW's CEO last month after eight years on the job and is delaying a number of the automaker's upcoming projects. Related Videos: News Source: Bloomberg NewsImage Credit: Mic V./Flickr Government/Legal Green Volkswagen Emissions Diesel Vehicles vw diesel scandal France subsidies

VW recalling all its diesels in Australia

VW's Australian division has announced it will recall all of its diesel vehicles that are believed to be programmed to cheat government emissions-testing process, Reuters says. VW Australia will recall almost 100,000 cars as a result. About two-thirds of the vehicles to be recalled in Australia will be Volkswagen-branded light-duty vehicles, while about 17,000 will be commercial vehicles. About 5,000 vehicles will be Skodas. New VW CEO Matthias Muller (former chief Martin Winterkorn stepped down towards the beginning of the diesel scandal) said last week that VW recalls in Europe would start in January, with all cars slated to be "fixed" by the end of next year. As for US VWs, any massive recall of the nearly half-million affected diesels here will be difficult to make work. VW is still figuring out how to deal with the 2016 model-year diesels, which are new a few months away from seeing the light of day because of the brouhaha. The company has been forced to resubmit those diesels to the US Environmental Protection Agency (EPA) for more testing. Back in Germany, local investigators have searched Volkswagen's headquarters in Wolfsburg for more information on the so-called "defeat device" software built into VW's diesel engines. Volkswagen has set aside $7.3 billion to deal with the fallout from the scandal after estimating that as many as 11 million of its diesel-powered worldwide vehicles use software that essentially games emissions tests system. Without this cheater software, VW's diesels perform worse when they follow emissions regulations. Related Videos: News Source: ReutersImage Credit: Paul J. Richards / Getty Government/Legal Green Volkswagen Emissions Diesel Vehicles vw diesel scandal

VW must explain diesel fix by Nov. 20 in California

The state of California has long been ahead of the game when it comes to enacting laws limiting greenhouse gas emissions from light-duty vehicles in the US. Now, it looks like the Golden State is again leading the pack as it tries to get to the bottom of the Volkswagen diesel-emissions scandal that has shaken up much of the automotive industry. In fact, while VW has come out and said vehicle recalls wouldn't likely start happening until at least January, the state is giving VW until Nov. 20 to outline how it will repair its diesel-powered vehicles to comply with emissions mandates, Reuters says, citing a spokesman with the California Air Resources Board. That deadline coincides with the 45-day mark after VW received its Sept. 18 compliance letter about the diesel issue. In fact, California regulators may well start testing non-VW diesel vehicles to see if any other automaker installed software that would cause diesel emissions to be underestimated. Other German automakers such as BMW have boosted their diesel-vehicle production in recent years in an effort to meet tightening greenhouse-gas emissions and fuel-economy standards. VW has estimated that as many as 11 million light-duty diesel vehicles may include cheating software. Given that California is the largest US auto market, many of those vehicles are tooling around the state. In all, Volkswagen has earmarked $7.3 billion to address the scandal's issues, while former CEO Martin Winterkorn has stepped down and has been replaced by Matthias Muller. Related Video: