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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.

Volkswagen Tiguan arrives with chiseled looks, GTE plug-in model [w/video]

After a long run, Volkswagen has finally retired the first-generation Tiguan crossover in favor of the larger, more chiseled second-generation model. The new compact is longer, wider, and lower than the more upright CUV that came before it. Yet, as we covered in our original post, the new Tig is also over 100 pounds lighter. The bodywork is conservative but handsome; typical of newer VWs. We see plenty of Passat and Touareg in the fascia, which features a three-bar grille that integrates neatly with the slightly canted, rectangular headlights. The beltline looks higher than today's Tiguan, and sits below a more aggressive greenhouse, which is a welcomed change after the soft, crossovery looks of the last-gen model. While VW has only released European powertrain options – there are eight engine options, split evenly between gas and diesel and boasting anywhere from 123 to 237 horsepower – we'll expect a far smaller roster for the US. Look for VW's familiar 2.0-liter, turbocharged four-cylinder to feature prominently in both front- and all-wheel-drive models, while we're personally hoping VW will see the light and offer a 2.0-liter TDI Tiguan. Of course, there's more than just gas and diesel for the new Tiggy. The all-new GTE model promises plug-in capability. Expect 31 miles of electric range and 215 system horsepower. There are even solar panels on the roof which could generate up to an extra 600 miles per year of driving range. VOLKSWAGEN REVEALS ALL-NEW EUROPEAN TIGUAN AT THE FRANKFURT INTERNATIONAL MOTOR SHOW Based off the MQB platform, the new European Tiguan revolutionizes the compact SUV • Powerful, authentic SUV design of the new Tiguan was completely reconfigured. • Tiguan is the first Volkswagen Group SUV to be based on the modular transverse matrix (MQB). • Longer, wider, lower – new vehicle architecture enables sportier proportions • Tiguan makes its debut at the IAA in an R-Line version, a classic on-road version and a version with an off-road front end. • Volkswagen is also showing the Tiguan GTE in Frankfurt with a plug-in hybrid drive and 1.9 litre per 100 km fuel consumption. • Newly conceptualised solar roof module for the Tiguan GTE increases its electric driving range. • Front Assist with City Emergency Braking and Pedestrian Monitoring, active hood, Lane Assist and the Automatic Post-Collision Braking System are fitted as standard.

VW internal investigation finds 'no evidence' against suspended engineers

Volkswagen is still working out the chain of events that led to emissions-evading software being installed in 11 million diesel vehicles worldwide and deciding who was responsible for the treachery. So far, the German automotive giant's internal investigation hasn't publicly named many suspects, and three suspended executive-level engineers have been found not to be culpable in the wrongdoing, according to an anonymous insider speaking to Reuters. VW knows that the software began being installed in the EA 189 engine in 2008. The internal investigation has found that the emissions-evading tech was created because the powerplant was found to fail US standards. Plus, the diesel mill wasn't meeting cost targets, according to Reuters. The automaker responded by suspending over 10 employees, but three top engineers among them might not have been involved. Those put on leave include Heinz-Jakob Neusser from VW, Ulrich Hackenberg from Audi, and Wolfgang Hatz who led Porsche's research and group-wide engine development. The internal detective work hasn't turned up any evidence against these three men. In addition to VW's own inquires, government investigators in both the US and Germany are taking a serious look into the company's actions, too. So far, the automaker is setting aside about $7.3 billion to pay to fix the vehicles with the evasive software. Depending on what authorities find, the costs could grow quickly. Beyond the financial implications, the scandal has led to a serious shakeup in VW's corporate structure. Related Video: