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Former Porsche boss Wiedeking won't face criminal charges over VW bid

Hedge fund managers have been suing Porsche for years now, alleging that the car company lied about its intentions during its failed attempt to take over Volkswagen, a gambit that caused them billion in losses. Over the same period, authorities in Stuttgart built a criminal case against former CEO Wendelin Wiedeking (above, left) and Chief Financial Officer Holger Härter (right), filing charges in December 2012. When those fund plaintiffs lost their most recent court case, one of the dimming lights in the dark and receding tunnel was that the criminal investigation might unearth more evidence about Porsche's actions that could help the plaintiffs in pending litigation.
Bloomberg reports that another light has gone out, though, with a Stuttgart court dismissing the market manipulation case before going to trial because, as a court spokesperson said, "there wasn't enough evidence backing up the charges." When prosecutors get the files back from the court, they have a week to decide to refile, but unless they've been sandbagging evidence that could bolster the case, the only lights at the end of the tunnel will be those welcoming Wiedeking and Härter back to the world of legally unencumbered men.

EPA discovers defeat device in more VW TDI engines

In a sternly worded letter, the United States Environmental Protection Agency has issued a new set of allegations against Volkswagen claiming that so-called emissions defeat software has been found in the company's 3.0-liter TDI V6 diesel engines. This is a completely different engine than the 2.0 TDI that has already been identified as an emissions cheater. In addition to VW, the EPA has included Audi and Porsche in this notification, as the non-compliant engine has been used in vehicles from all three manufacturers from model years 2014 through 2016. The EPA claims that cars equipped with the 3.0 TDI engine know when they are being tested for emissions, and their on-board computers switch into a mode designed to pass the stringent requirements in the United States for diesel exhaust. Vehicles sold in the United States with this engine include the 2014 VW Touareg, 2015 Porsche Cayenne, and 2016 Audi A6, A7, A8L and Q5. The EPA says there are 10,000 vehicles currently on the road with this second defeat device, along with an unknown number of 2016 models either on dealer lots or in the driveways of consumers. According to the EPA, VW's 3.0-liter TDI, like the 2.0 TDI that was found to circumvent US regulations, has code in its computer specifically written to intentionally put the vehicle's engine into a mode that allows it to meet exhaust requirements. When the vehicle is unhooked from testing equipment, it will go back into a mode that emits nine-times higher nitrogen oxide emissions than is allowable under US law. "VW has once again failed its obligation to comply with the law that protects clean air for all Americans," said Cynthia Giles, Assistant Administrator for the Office for EPA's Enforcement and Compliance Assurance. "All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect." Richard Corey, Executive Officer of the California Air Resources Board, said in a statement, "Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open." This story will be updated as new information becomes available.

Audi to keep hiring workers despite VW diesel scandal

Even while Volkswagen contemplates delaying or canceling projects to pay for costs related to the massive diesel emissions scandal, its stablemate Audi is hiring, according to Reuters. Audi certainly isn't immune to the diesel scandal, with around 2.1 million affected vehicles worldwide including 13,000-14,000 in the US, but the scandal so far isn't affecting staffing levels. "We are sticking with plans for strategic growth and are continuing to hire new employees as planned," Audi board member for human resources Thomas Sigi said in a German newspaper, according to Reuters. Sigi even suggested paying a "respectable" bonus to workers next year. Audi has some big projects on the horizon, too. Among them, the company intends to launch a production version of the E-Tron Quattro Concept in 2018, and for performance fans a new TT RS appears to be on the way. The new A4 should be a big contributor to global volume when its worldwide rollout is complete. Rather than allowing the diesel scandal to hurt all of its divisions, the VW Group instead wants to concentrate the fallout (and costs) on the VW brand, according to Reuters. Those expenses could be huge. Volkswagen is budgeting around $7.3 billion just to repair the 11 million emissions-cheating vehicles. Worldwide, maximum estimates put the whole mess at $87 billion. Related Video: