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German prosecutors raid VW, Audi offices

As Volkswagen continues to try to put its diesel emissions scandal behind it, the company has had mixed success. It has agreed to pay penalties and fix or buy back affected vehicles in the US, and has made a strong push to evolve into a greener, mobility-focused company. The scandal just won't die, though, and has, in fact, just escalated. Prosecutors have searched Volkswagen's Wolfsburg, Germany, headquarters, as well as Audi offices in Ingolstadt and Neckarsulm and even the homes of some Audi executives, Reuters reports. The raids, which coincided with Audi's annual earnings press conference, are related to 80,000 diesel vehicles with possible emissions cheat devices sold in the US between 2009 and 2015. European vehicles aren't part of this particular investigation. "With these search orders, we aim to clarify in particular who was involved in deploying the technology concerned and in the provision of false information to third parties," the Munich prosecutor's office says. Audi CEO Rupert Stadler, who says his residence had not been one of those searched, says he is supporting the ongoing investigation, admitting that the company has a long way to go to recover from the scandal. The Dieselgate scandal, as it has come to be known, broke in September 2015. Related Video:

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.

The super-sized Atlas isn't the three-row VW should build

In the late '50s and early '60s the Volkswagen Beetle wasn't ubiquitous in my hometown of Lincoln, Nebraska, but it came pretty damn close. Fords and Chevys dominated, but beyond the occasional MG, Triumph, or Renault the import scene was essentially a VW scene. When my folks finally pulled the trigger on a second car they bought a Beetle, and that shopping process was my first exposure to a Volkswagen showroom. For our family VW love wasn't a cult, but our '66 model spoke – as did all Volkswagens and most imports at the time – of a return to common sense in your transportation choice. As VW's own marketing so wonderfully communicated, you didn't need big fins or annual model changes to go grab that carton of milk. Or, for that matter, to grab a week's worth of family holiday. In the wretched excess that was most of Motown at the time, the Beetle, Combi, Squareback, and even Karmann Ghia spoke to a minimal – but never plain – take on transportation as personal expression. Fifty years after that initial Beetle exposure, and as a fan of imports for what I believe to be all of the right reasons, the introduction of Volkswagen's Atlas to the world market is akin to a sociological gut punch. How is it that a brand whose modus operandi was to be the anti-Detroit could find itself warmly embracing Detroit and the excess it has historically embodied? Don't tell me it's because VW's Americanization of the Passat is going so well. To be fair, the domestic do-over of import brands didn't begin with the new Atlas crossover. Imports have been growing fat almost as long as Americans have, and it's a global trend. An early 911 is a veritable wisp when compared to its current counterpart, which constitutes – coincidentally – a 50-year gestation. In comparing today's BMW 3 Series to its' '77 predecessor, I see a 5 Series footprint. And how did four adults go to lunch in the early 3 Series? It is so much smaller than what we've become accustomed to today; the current 2 Series is more substantial. My empty-nester-view of three-row crossovers is true for most shoppers: If you need three rows of passenger capacity no more than two or three times a year – and most don't – rent it forgawdsake. If you do need the space more often, consider a minivan, which goes about its three-row mission with far more utility (and humility) than any SUV.