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Winterkorn receives support of VW board, leadership battle continues

Strange things have been happening - in public, that is - at Volkswagen over the past few weeks, kicked off when VW Group chairman Ferdinand Piech reportedly said he didn't want Group CEO Martin Winterkorn to be the next company chairman, and that he was keeping Winterkorn "at a distance." Winterkorn's ascension was widely believed to be a fait accompli. We were really just waiting for office furniture and desk plaques to be moved around. That led to a meeting of the six-member supervisory board's leadership committee in Piech's office in Salzburg, Austria, not at Group HQ in Wolfsburg, Germany, where the five other members of the committee came out in support of Winterkorn. They also suggested they might extend his contract when it ends in 2016, and then gave Piech an ultimatum to agree to public support of the CEO or they would demand Piech's resignation. At the same time, the company's labor reps and the German state of Lower Saxony issued statements supporting Winterkorn. It's said that the chairman has a number of gripes with the CEO, prime among them being the state of the company's US business for the core Volkswagen brand. Market share has dropped to two percent in the United States and Winterkorn admitted that his team hasn't been properly engaged with our market. Years of effort put into a budget car haven't resulted in much except the company saying it finally knew how to do one, and that was a year ago. It's losing share in Brazil, overall profit margins are down, BMW is taking possession of the green-car credentials among German brands, and it's said that Piech doesn't believe Winterkorn has the vision to do what's necessary. Having agreed to play along and now in "diplomacy phase," some say a little light has gone out of Piech's star inside the company, while others wonder if this battle is truly over. Related Video: News Source: Automotove News - sub. req.Image Credit: JOHANNES EISELE/AFP/Getty Images Hirings/Firings/Layoffs Volkswagen martin winterkorn volkswagen group

Winterkorn not under official investigation in Germany

Prosecutors for the state of Lower Saxony in Braunschweig, Germany, are now saying that former Volkswagen CEO Martin Winterkorn is no longer specifically under investigation for his role in alleged fraud related to the automaker's diesel emissions scandal. The lawyers are clarifying that there's no formal inquiry into the exec because there's not yet enough evidence to establish a suspicion of wrongdoing, Bloomberg reports. However, they are still looking into VW's actions. Earlier this week, the prosecutors announced they had begun an initial investigation into Winterkorn for alleged fraud in the emissions regulation evasion. At that time, there were reportedly 12 complaints asking the lawyers to look into the case, including one from VW. Under German law, only a person could be charged for the potential crimes, rather than a whole company. "An initial suspicion must be based on facts, and you must begin an investigation before you can establish the facts," Christoph Schalast, a professor at the Frankfurt School of Finance, said to Bloomberg. Meanwhile in the US, the investigation continues into VW. The Department of Justice has the support from at least two senators to pursue criminal and civil charges against the company. The attorneys general in at least 29 states are also looking into things. Meanwhile, lawyers are building a class-action lawsuit, as well. To help in its defense, the automaker is employing the help of the same firm that defended BP during the Deepwater Horizon oil spill. Related Video:

Volkswagen throws a Polo-palooza with four new or upgraded models

Volkswagen unveiled a parade of new and upgraded Polo models at the 2014 Geneva Motor Show, including the Polo TSI BlueMotion, Polo TDI BlueMotion, Polo BlueGT and CrossPolo (pictured above). While they will likely never make an appearance this side of the pond, it is fun to see what European subcompact drivers will be driving later this year.
The new BlueMotion models represent the most efficient petrol and diesel options in their class, according to VW. The BlueMotion TDI offers just 73 horsepower from its diesel engine but gives the equivalent of 76 miles per gallon (US) in the EU test. The BlueMotion TSI brings a little more power with its 88-hp petrol engine and has a combined rating of 57 mpg (US) in the EU cycle.
The Polo BlueGT provides a balance of performance and economy, and for the 2014 model, it gains a 9-horsepower boost to its 1.4-liter turbocharged to give drivers 147 hp at the press of the accelerator. This year's car also has an optional Sport Select suspension with electronically controlled dampers to improve handling a bit. It's still fitted with active cylinder management to use as little gas as possible when cruising.