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VW diesel incentives could be fuel for prosecutors

In the 2000s, Volkswagen was among the companies that lobbied the government to get buyers of diesel vehicles a tax credit. The automaker even brought some of these models to Washington to show them to politicians. The incentive eventually passed, and about 39,500 customers of the 2009 Jetta TDI and Jetta SportWagen TDI got a $1,300 benefit – for a total cost of around $51 million. Now, according to Reuters, that politicking might come back to bite the automaker when prosecutors finally get cases to trial. The US Department of Justice, the Environmental Protection Agency, and attorneys general in at least 29 states are already investigating VW, and politicians are pushing for criminal and civil actions against the company. According to Reuters, there could be several legal routes available, too. One option is to bring tax fraud charges, and that would require proving the automaker knew it was making untrue claims about the diesel models. There's also the option of bringing a case under the False Claims Act, which prohibits fraud against the government. According to Reuters, a maximum penalty under the law would be three times the tax credit and another $5,000 for each vehicle that received it. The company is also facing a class-action lawsuit from disgruntled owners. To aid its defense against all of these claims, VW has hired the same firm that worked with BP during the Deepwater Horizon oil spill. Outside of the US, prosecutors in Germany have just started to build a case against former CEO Martin Winterkorn for alleged fraud. In addition to these potential legal penalties, VW could be fined around $18 billion by the EPA for the emissions infractions. The agency's investigation is getting the added backing of its Canadian counterpart. Although, the actual settlement is expected to be far less.

Lamborghini has been developing an IPO strategy 'for a long time'

Porsche AG isn’t the only Volkswagen AG brand that has been quietly preparing for a potential initial public offering. Italian luxury-car maker Lamborghini has been developing a strategy how to present itself to stock-market investors since well before Volkswagen asked each of its brands to come up with virtual equity stories, according to the unitÂ’s Chief Executive Officer Stephan Winkelmann. “WeÂ’ve been working on this with other agencies in order to create clarity,” Winkelmann said. “As a brand, weÂ’ve done so for a long time, to show what worth, what value we have. Up until a little while ago, it wasnÂ’t so well known.” Porsche became EuropeÂ’s most valuable automaker last month, when its market capitalization overtook that of VW a week after its IPO in Frankfurt. The debut of the 911 maker was a bold move into public markets, which have been largely shut for most of the year. VW CEO Oliver Blume has said he sees the listing as a blueprint to unlock more value from the groupÂ’s brands that also include Audi and Bentley. “An IPO drill is exactly what you do to show the public how solid you are and what is in progress for the future,” Winkelmann said. “We have a clear story and strategy for that.” Audi, which oversees VWÂ’s premium brands, said last month there are no concrete plans for an IPO of Lamborghini. A previous push to potentially spin off the carmaker and motorcycle brand Ducati ran into opposition from labor leaders. Still, LamborghiniÂ’s recent profit gains -- including a 31.9% operating margin in the first half of this year -- make a solid case for a stock-market listing, said Michael Dean, an analyst at Bloomberg Intelligence. “An IPO is something that could potentially happen in the next 18 months, depending on market conditions,” Dean said. “A ˆ15 billion valuation is entirely justifiable and could be even higher, given the margin metrics.” LamborghiniÂ’s deliveries rose 8% to 7,430 vehicles in the first nine months of the year. Operating profit climbed 69% to ˆ570 million ($567 million). Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Lamborghini teases Huracan Sterrato tackling terrain

MotorWeek recalls the glory days of the VW Cabriolet

Remember the car that the rich, very attractive girl in your high school got on her 16th birthday? Was it a Volkswagen Cabriolet? But time marches on, and the boxy convertibles have attained a certain quirky coolness in the modern day. MotorWeek weighs in with a look at the 1989 model in the latest entry in its Retro Review series. MotorWeek actually comes away rather impressed with the Cabriolet, especially its handling. The show doesn't even complain about the big roll bar over the center of the car that has always looked more like a basket handle than a safety aid. Host John Davis must have enjoyed driving the droptop VW, too – despite his very '80s windbreaker and polo shirt ensemble, he was sporting quite the tan in this clip. The small, inexpensive convertible segment has largely disappeared today, but as MotorWeek shows by comparing the Cabriolet to the Chrysler LeBaron and Chevrolet Cavalier, it wasn't always this way. Take a ride in VW's droptop to see how it scores.