1979 Volkswagen Bus Westfalia Unrestored Original Paint One Owner Rare Find on 2040-cars

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VW execs didn't think diesel problem would be so serious

Volkswagen Group has admitted that former chairman Martin Winterkorn received two memos about the diesel scandal in 2014. Top execs ignored the problem because they didn't think it was a serious issue. VW disclosed these details to counter allegations in a German shareholder lawsuit that alleged the automaker violated the law by withholding the info from investors. A memo on May 23, 2014 first advised Winterkorn about emissions cheating. A memo on May 23, 2014, first advised Winterkorn about the study from the International Council on Clean Transportation, which identified the emissions cheating. According to VW, the document was part of the exec's weekend mail, and the company's investigation didn't discover whether Winterkorn actually read it. A rumor last month alleged this memo existed. Another memo for Winterkorn on November 14, 2014 was about several defects, including the diesel engines. The document estimated it would cost 20 million euros ($22 million US at current rates) to fix the problem. The chairman learned about the issue again on July 27, 2015, during a meeting on product issues. "Mr. Winterkorn asked for further clarification of the issue," according to VW's statement. Things got serious at the end of August 2015. Things got serious at the end of August 2015 when technicians explained the diesel issue to the legal department. VW came clean to the California Air Resources Board and the Environmental Protection Agency on September 3. A memo told Winterkorn the next day, which was also previously alleged. According to this investigation, management didn't believe the diesel problem would affect the stock price, and they estimated the cheating might cost at most a few hundred million dollars in fines. The execs were clearly wrong. The share price dropped after the scandal broke last September, and the problems have started to affect its divisions. According to Reuters, Audi reported it suffered 228 million euros ($249 million) in costs in 2015 from the emissions issue and repairing Takata's faulty airbag inflators. Volkswagen still doesn't know the exact costs of the scandal, but the automaker's law firm, Jones Day, plans to release a report in the second half of April to explain the whole affair. By that time, we might also know how VW plans to fix the problem because a judge recently gave the company until March 24 to outline a fix for the 2.0-liter TDI. CARB started evaluating a repair plan for the 3.0-liter TDI in early February.

Porsche again staring down another $1.8B in hedge fund lawsuits

The sequence of events from 2007 that began with Porsche's secret attempt to take over Volkswagen, and instead lead to Porsche being taken over by VW, continues to instigate lawsuits against the Stuttgart sports car manufacturer. A group of hedge funds that suffered over $1 billion in losses sued the car company in New York. Porsche had publicly stated it wasn't trying to buy VW, the hedge funds in question were shorting VW stock, and when Porsche's actual intentions were revealed, the stock shot up and the hedge funds took a beating.
The case was thrown out over the issue of jurisdiction, then appealed, only to see another suit filed on top of that. After that, most of the hedge funds withdrew their claims in New York and Porsche offered a 90-day window to refile in Germany where it is already fighting a number of other suits over the same issue. The hedge funds accepted the offer, refiling in Stuttgart for $1.8 billion in damages. According to Bloomberg, Porsche hasn't commented on the refiling, but as the same plaintiffs are involved, it's safe to assume that the carmaker still feels the case is "unsubstantiated and without merit." It has fared alright so far even in German courts, with two lesser cases against it thrown out last year.

Volkswagen Tiguan tunes up for Frankfurt show

Volkswagen is in the phase of testing where it's simply beating the crap out of the next-generation Tiguan. The German manufacturer is conducting high-altitude towing tests in the Alps of mules wearing the production-ready body of its second-gen compact CUV. This is the first time we've seen the Tiguan in its production body, and despite the ample camouflage, the resemblance to not only the Passat sedan, but the Cross Coupe GTE and CrossBlue concepts, is clear. That's particularly true based on what we can see of the new Tiguan's grille and headlight treatment. In back, the Tiguan will adopt a more sporting roofline, particularly in the aggressive rake of the D-pillar. It's significantly different than the current car, and frankly, that's no bad thing. Expect the usual array of gas and diesel four cylinders with both front- and all-wheel drive on offer. On the high end, meanwhile, our spies claim a 300-horsepower R model could eventually be added to the range. Aside from its new look, future variants could see the crossover spawn both a long-wheelbase version and a coupe-like model. That said, we're wondering how a long-wheelbase Tiguan would fit into the VW range alongside the long-rumored, American-built, three-rower. According to our spies, though, neither one of those vehicles would arrive until well after the vehicle shown above debuts. As for when we can expect to see the second-gen Tiguan, our spies point to September's Frankfurt Motor Show. Be sure to check back then.