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Investors storm Volkswagen with $9 billion in lawsuits

Volkswagen's investors are latest group to take up pitchforks against the embattled automaker, and they're seeking $9 billion in damages, Reuters reports. The investor lawsuits were filed in a court in Braunschweig, Germany, near Volkswagen's Wolfsburg headquarters. On Monday, the first business day following the anniversary of the emissions revelations, the court received 750 lawsuits alone. All told, about 1,400 lawsuits have been filed. The largest single claim totals $3.7 billion and was filed more than six months ago. The lawsuits stem from complaints that Volkswagen didn't divulge information on the cheating software to investors quickly enough. Volkswagen has said that it hasn't broken any capital market laws. The $21.5 billion the company set aside to weather the storm may not be enough. The consumer fix is estimated to run the company $14.7 billion, either through buybacks or a fix that still seems unclear. In addition to the lawsuits, Volkswagen CEO Matthias Mueller confirmed that Audi boss Rupert Stadler is under investigation regarding the scandal. Mueller refused to give further details, but this shouldn't come as a surprise to anyone. Audi has admitted that its 3.0-liter V6 was equipped with the same emissions-cheating software as the 2.0-liter four-cylinder diesels. Stefan Knirsch, Audi's head of development, has been suspended as part of the overall investigation. Knirsch took over duties after his predecessor quit. Knisch was previously head of engine development at Audi. Related Video: News Source: Reuters Green Hirings/Firings/Layoffs Audi Volkswagen Emissions Diesel Vehicles vw diesel scandal

UAW tactics called into question at VW's TN plant

The United Auto Workers is in hot water with some of the very workers it is trying to unionize at Volkswagen's Chattanooga assembly plant. According to The Tennessean, eight Volkswagen factory workers have filed complaints against the UAW with the National Labor Relations Board, claiming the union "misled or coerced" them into formally asking for union representation.
The UAW has instituted a major push at the Chattanooga plant to represent the 2,500 hourly laborers that build the VW Passat by using what's called a card-check process. The tactic is opposed by the National Right to Work Legal Defense foundation, the group representing the workers. The card-check process demands that a company recognize a union that obtains the signatures of more than half its workforce, according to The Tennessean. This tactic is in contrast to the more traditional route, which sees employees vote on union representation.
The workers filing the complaint claim that the UAW told them the cards merely called for a secret ballot, rather than an outright demand for union representation. Workers also allege that the UAW has made it overly difficult to reclaim their signed cards, some of which were signed so long ago that they have been rendered invalid. Although the cards can force a company's hand, federal law still allows the company to ask for a secret ballot before yielding to unionized workers.

West Virginia researcher describes how Volkswagen got caught

The cheating scandal engulfing the world's largest automaker started with a road trip. In the spring of 2014, researchers from West Virginia were evaluating the tailpipe emissions of diesel cars made for the American market by European manufacturers, something never before studied in the academic realm. Excited by the prospect of breaking new ground, the team of two professors and two students wanted to gather as much data as possible. "And being academics, we went a little overboard," said Arvind Thiruvengadam, one of the students. "Being academics, we went a little overboard." Overboard included driving the cars for more miles than they needed to test and verify results. Drivers put about 1,500 miles on each of the first two cars in the study, a Volkswagen Jetta and BMW X5, along California roadways. For their final car, a Volkswagen Passat, they wanted even more mileage. So they took the car on a road trip from Los Angeles to Seattle and back again, collecting data from more than 2,000 miles of testing. The road trip was Volkswagen's undoing. When the West Virginia team returned to Los Angeles, they were befuddled by the test results. In theory, the Passat should have spewed the lowest levels of pollutants among the three cars. Equipped with the more modern selective catalytic reduction technology, the team expected to find minimal levels of nitrogen oxide. But the car, which had been certified at a California Air Resources Board facility prior to the start of the road trip, had elevated levels of NOx that were 20 times the baseline levels established beforehand. The researchers, comprised of professors Gregory Thompson and Dan Carder and students Marc Besch and Thiruvengadam, knew their on-board equipment functioned properly because, early in their research, they had double-checked its accuracy after recording sky-high NOx readings from the Jetta that showed 30 times the level of its baseline testing at the CARB facility. It was particularly noteworthy because the Jetta contained the first-generation Lean NOx Trap technology, not the more efficient SCR, yet both produced large discrepancies. The BMW, on the other hand, performed as expected. Today, Thiruvengadam is careful to say the research team never suspected Volkswagen of cheating on emissions testing, nor did the researchers report such a finding. They merely reported their findings to CARB officials who then further investigated.