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German authorities investigate Winterkorn

Former Volkswagen CEO Martin Winterkorn is potentially walking away from the embattled automaker with a $32-million pension, but his retirement might not be quite so relaxed because German prosecutors in the city of Braunschweig (also called Brunswick) are now investigating his role in VW's diesel emissions evasion. The lawyers want to know whether he committed fraud, and a conviction could mean up to 10 years in prison, according to the Associated Press. However, this process is still in its earliest stages, and Winterkorn is long way from sitting in a courtroom. With other high-profile corporate cases in Germany as a guide, a trial could be years away. Lawyers haven't even questioned the former CEO, yet. In Germany, people are free to file criminal complaints, and prosecutors then decide whether a full investigation is necessary. According to the AP, Braunschweig has received about 12 grievances so far, including one from Volkswagen. The law in the country also doesn't allow charging businesses with wrongdoing, only people. Winterkorn resigned from his role at the top of VW last week, just a day after issuing a video apology for the automaker's actions. Former Porsche boss Matthias Muller has succeeded him. Along with having a new person in charge, the automaker's Supervisory Board instituted a thorough corporate reshuffle to put more focus on various regions and give brands additional power by early next year. Related Video:

New info on how VW, Porsche, Audi V6 TDI engine cheat works

The German newspaper Bild am Sonntag is reporting that US investigators have found three pieces of software that work in concert to turn off the emissions control equipment in certain diesel models after a set period of time. The engine in question, the 3.0-liter TDI turbodiesel, was found in certain Volkswagen Touareg, Audi Q7, and Porsche Cayenne models – the sale of which was suspended in the US late last year. Since most emissions compliance testing takes around 20 minutes, the software in the three VW Group models shuts off the emissions control equipment after 22 minutes, a straightforward end run around the testing. Remember that the 3.0-liter TDI engines aren't included in the big buyback and recall program announced for the smaller 2.0-liter, four-cylinder TDI engines. The 3.0-liter engines will likely get their own program, but we don't know when to expect it or exactly what it will look like. Last month, California rejected a proposed fix for the larger TDI engines, and VW went back to the drawing board. Since the company is unlikely to create two fixes, one for California and one for the rest of the nation, the company can't really proceed until they figure out a solution California will accept. The EPA hasn't officially commented on the report, and we don't know how Bild am Sonntag came across the information, but we'll be closely watching what emerges after this report. Related Video:

Volkswagen tipped to launch turbocharged Up! with 100 hp

Overseas customers enticed by the compact dimensions of the Volkswagen Up! but turned off by its diminutive 1.0-liter three-cylinder engine may be encouraged by reports that the German automaker is planning a more potent turbo version. Previewed by the GT Up! concept showcased at the 2011 Frankfurt Motor Show (pictured above), the more performance-oriented model is expected to pack the turbo three from the larger Polo, where it produces 100 horsepower channeled through a five-speed manual transmission. That may not seem like much, but it would put the existing 59- and 74-horsepower versions of the German city car to shame. That might not give it enough punch to keep pace with the upcoming Smart Fortwo Brabus (and its Renaultsport Twingo counterpart), tipped to pack as much as 130 hp, but it could stand to out-perform the existing 89-hp turbo models of both. Given that the reports are emanating from Brazil, however, it is possible that the Up! Turbo (or whatever it's ultimately called) would be limited to the South American market, if it's built at all. One thing's for sure, though: it's not likely to make it to North American showrooms anytime soon.