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Piech's dismissal from VW came after failed coup to oust Winterkorn

When the Volkswagen board ousted its chairman Ferdinand Piech over the weekend, we knew right away it had something to do with disapproval of chief executive Martin Winterkorn. And now we have more details of how that struggle reportedly came to a head. According to Reuters, Piech undertook a cloak-and-dagger campaign to oust Winterkorn as CEO, even after having publicly endorsed the top executive's leadership of the company. Piech reportedly focused on other members of his family – descendants of Ferdinand Porsche and majority stakeholders in Volkswagen – to install Porsche chief Matthias Mueller as group CEO in Winterkorn's stead. But Piech failed in his campaign, and was given an ultimatum by the board: either show yourself out or we'll kick you out. And so he resigned. A big part of Winterkorn's rescue and Piech's failure reportedly came at the hands of labor representatives on the VW board, like Berthold Huber who was appointed as acting chairman following Piech's departure. That may leave Winterkorn still in charge, but may leave him beholden to the unions even more than before. Winterkorn has been undertaking a concerted campaign to cut overhead costs at VW, but the trade unions have reportedly been blocking many of the steps the chief exec has proposed. The next big question is who will ultimately replace Piech in the long term at the head of the board table. Winterkorn could get the nod, leaving the company to find a new CEO to take his place. Another likely scenario, however, would be another member of the Porsche/Piech family taking the helm and leaving Winterkorn in place. Whether Ferdinand Piech ultimately sells his 13.2 percent stake in the company (likely to other members of his family) or holds on to it and exerts influence behind the scenes is an open question. One way or another, any major appointment at the head of either the management or supervisory board will require support from the Porsche/Piech family, from the works council of labor representatives and from the state government of Lower Saxony, so the process of filling Piech's vacancy will likely prove anything but straightforward. News Source: ReutersImage Credit: Thomas Kienzle/APN Hirings/Firings/Layoffs Volkswagen martin winterkorn

Audi, Porsche ensnared in new Volkswagen cheating allegations

The scope of the Volkswagen emissions cheating scandal that has enveloped the global automaker for the past six weeks widened Monday. Now, some of the automaker's premium brands are further ensnared in the mess. Officials with the Environmental Protection Agency issued a second notice of violations Monday, accusing Volkswagen of violating the Clean Air Act by using defeat devices that circumvent emissions testing on diesel versions of certain vehicles equipped with 3.0-liter engines. Roughly 10,000 vehicles in the United States contain the illegal software, the EPA alleges. That's a far smaller number than the 482,000 vehicles affected by the first instances of cheating, which Volkswagen confessed to in September. But this latest violation alleges the cheating occurred broadly through the Volkswagen empire and includes vehicles from the Porsche and Audi brands. Audi had one model, the A3, involved in the first round of announced violations. But the brand, which has enjoyed skyrocketing sales in the US in recent years, is more extensively involved in violations announced Monday. The 2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 are among the cars which contain the illegal software, which permits the cars to emit nitrogen oxide at up to nine times the allowable thresholds set in the Clean Air Act, according to the EPA. The 2015 Porsche Cayenne and '14 Volkswagen Toureg SUV are also affected. "There is clear evidence of additional violations and it's important to put Volkswagen on notice and to inform the public." - Janet McCabe. "Audi, which has been on a roll in terms of sales, reputation and image of late, now is being drawn deeper into the quagmire," said Michelle Krebs, senior analyst for Autotrader. "Previously, only the low-volume A3 was under scrutiny, but now Audi's core models are under fire." Audi officials did not respond to a request for comment Monday. In a written statement issued late Monday afternoon, a Porsche spokesperson said, "We are surprised to learn this information. Until this notice, all our information was that the Porsche Cayenne Diesel is fully compliant." Porsche said it would cooperate with authorities.

EVs still burning aboard ship carrying luxury cars near Azores

LISBON — Heavy tug boats on Tuesday sprayed water on a burning ship carrying thousands of Porsches and Bentleys adrift off the coast of Portugal's Azores islands, the ship's manager said in a statement. The Felicity Ace, carrying around 4,000 vehicles including Porsches, Audis and Bentleys, some with lithium-ion batteries, caught fire on Wednesday last week. The 22 crew members on board were evacuated the same day. Ship manager Mitsui O.S.K. Lines Ltd (MOL) said in a statement the vessel was still on fire but stable, and that no oil leak had been reported so far. It also said the ship was drifting further from the Azores islands in the Atlantic Ocean. Two large tug boats equipped with firefighting gear arrived from Gibraltar on Monday, and were working with another patrol boat to spray water at the Felicity Ace and cool it down, MOL said. The arrival of two other tug boats with more firefighting equipment is scheduled for Feb. 23 and Feb. 26. "Together with the all relevant parties, MOL is making every effort to contain the damage and resolve the situation as soon as possible," MOL said. Joao Mendes Cabecas, the captain of the nearest port on the Azorean island of Faial, said on Sunday the fire had lost its intensity, probably because there was little left to burn. Cabecas said as the fire subsides and the structure cools down, firefighting teams and technicians might be able to board the vessel to prepare to tow it either to Europe or the Bahamas. "When conditions are safe the salvage team will board the Felicity Ace for an initial assessment," MOL added. Cabecas told Reuters over the weekend the lithium-ion batteries in the electric vehicles were "keeping the fire alive." It was not clear whether the batteries had caused the fire. MOL did not immediately respond to a Reuters request for comment on the cause of the fire. Volkswagen, which owns the car brands, said on Monday it did not have any further information to share. Green Bentley Porsche Volkswagen Electric Luxury ev fire