1974 Volkswagen Super Beetle 1.6l on 2040-cars

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VW's diesel problems could end in criminal prosecution

It's not just auto industry insiders who are re-evaluating their thoughts on VW's diesel line-up following last week's bombshell accusation that the German automaker willfully installed software in almost a half-million diesel vehicles sold in the US to get around government emissions tests. Things are moving fast in what is already being called "dieselgate," but here are some of the big news items that we've learned since VW CEO Martin Winterkorn issued an apology yesterday. The biggest news is that both the US and German governments are looking into criminal prosecutions. Here, the US Justice Department has started a criminal investigation and Germany said that its Federal Motor Transport Authority will get involved. When the full history about all of this is written, two key players will be John German and Peter Mock from the International Council on Clean Transportation. They were the researchers responsible for actually calculating the emissions, and thus discovered that what was coming out of the tailpipe and what VW was telling the EPA did not match up. Once the EPA understood what was going on, it forced VW to either explain things all of its 2016 models would not receive certification. Sales of all VW diesels in the US have indeed been stopped, and the EPA says it will take a closer look at all light-duty diesel vehicles in the US. The re-engineered 2016 Volkswagen Passat is being launched in New York today. Two senior Volkswagen executives who were supposed to attend the event - Heinz-Jakob Neusser, VW's board member in charge of technical development and Herbert Diess, chairman of the VW brand's management board - have cancelled. An Audi vehicle is among the VW Group's vehicles affected by this issue, the A3 TDI. Given that VW has admitted in some fashion to installing the "defeat device" to get around the emissions tests, Audi's slogan "Truth In Engineering" now sounds less than perfect. Yes, there is already talk of class-action lawsuits. Nothing official is out yet, but expect to hear more about this in the near future.

Former Porsche execs acquitted of stock manipulation charges

A German court acquitted former Porsche CEO Wendelin Wiedeking and former CFO Holger Harter of stock manipulation charges, according to Bloomberg. Prosecutors alleged the men hid plans to takeover Volkswagen while publicly denying their intentions to investors. The presiding judge didn't find any merit to those claims, though. "There is nothing to the allegations, absolutely nothing," Judge Frank Maurer said, according to Bloomberg. "There was no secret plan to take over VW." Rather than Porsche taking over VW, the exact opposite eventually happened, and both execs stepped down. Investigators first indicted Wiedeking and Harter for alleged stock manipulation in late 2012. A court in Stuttgart dismissed the case in 2014 because of a lack of evidence, but an appeals court later overruled that decision. The current trial finally began in October 2015. If convicted, Wiedeking faced up to 30 months in prison, and Harter could have received up to 27 months, Bloomberg reported. Prosecutors also wanted one million euro ($1.1 million) fines from them and 807 million euros ($910 million) from Porsche. The acquittal might not be the end of this long-running case, though. In Germany, prosecutors have the right to appeal a ruling, and the lawyer hasn't made a final decision yet. If the court thinks there's a reason, the former execs could be back in front of a judge at some point in the future.

Autoblog Minute: VW CEO Winterkorn out, rebuilding begins

Martin Winterkorn steps down as CEO of Volkswagen. Autoblog's Eddie Sabatini reports on this edition of Autoblog Minute, with commentary from Autoblog's Editor-in-Chief, Mike Austin. Show full video transcript text [00:00:00] Dr. Martin Winterkorn steps down as CEO of Volkswagen. I'm Eddie Sabatini and this is your Autoblog Minute. Dr. Winterkorn resigns in the wake of the VW emissions scandal. In a statement released to the press Dr. Winterkorn had this to say: "I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group... [00:00:30] I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part..." For more on what Winterkorn's resignation means for Volkswagen and the industry at large we go to Autoblog's Editor-in-chief, Mike Austin: [00:01:00] [Mike Austin Interview] The investigation into Volkswagen is ongoing and Autoblog will continue to cover the story as it develops. [00:01:30] For Autoblog, I'm Eddie Sabatini. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.