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Winterkorn kept diesel scandal secret, letter claims

Former Volkswagen Group CEO Martin Winterkorn allegedly kept quiet for two weeks about emissions defeat devices in the company's models. US officials eventually made the automaker's deception public on September 18th. "In the conversation on 03.09.2015 with the regulator CARB (California Air Resources Board), the defeat device was admitted," an employee told Winterkorn on September 4, according to Reuters citing Germany's Bild am Sonntag. Based on this information, Winterkorn had plenty of time to admit the problem. Evidence like this letter continues to suggest top figures knew about the emissions problem. In addition, a separate Bild am Sonntag report recently claimed that an employee emailed Winterkorn in May 2014 to tell him US regulators could discover the cheating. In the lower echelons of the company, the deception was allegedly an open secret among engineers as early as 2006, and people kept quiet even after workers tried to admit what was happening. This culture of secrecy seems to go even deeper than just the diesel emissions scandal. For example, engineers admitted that they cheated on CO2 tests to meet the company's strict standards. According to Green Car Reports, these problems also affected the US. In 2004, an Audi worker in America allegedly discovered an issue with the exhaust gas temperature sensor in some vehicles, but a German executive said not to admit the problem to US regulators. It's not clear whether any high level employees tried to fix the diesel emissions issue or if they simply kept the problem hidden. The company's internal report, which is due in the latter half of April, might address that concern. So far, the VW Group has said only a small group of people caused the scandal. However, these many allegations to the contrary make that claim difficult to believe. 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.

Volkswagen Group previews its wares on eve of Geneva show

The Volkswagen Group is comprised of 11 brands producing 240 vehicles across 49 factories throughout the world. So the best way to show off the range of the VW family is to cram a few thousand journalists and VIPs into a massive makeshift stand to outline the Group's goals, what's in the pipeline and what you'll be able to buy later this year.
To that end, VW pulled out all the stops on the eve of the 2012 Geneva Motor Show, bringing along 10 vehicles from across the range. We'll be delving into the details of each over the next two days of show coverage, but before that happens, you can read all about what we saw tonight from the cheap seats after the break.