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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.

Autoblog Minute: Porsche goes after Tesla

Volkswagen Group Night kicks off the 2015 Frankfurt Motor Show. Autoblog's Adam Morath reports on this edition of Autoblog Minute with commentary from Autoblog's Editor-in-Chief, Michael Austin. Show full video transcript text [00:00:00] Volkswagen Group Night kicks off the 2015 Frankfurt Motor Show. I'm Adam Morath and this is your Autoblog Minute. In keeping with tradition Volkswagen Group Night will take place before the first press day of the Frankfurt Motor Show. It's here that VW will unveil all the latest innovations for each of the brands in the group's extensive portfolio. For more we go to Autoblog's Mike Austin: [00:00:30] [Michael Austin Interview] Autoblog staff is on site in Germany [00:01:00] for comprehensive coverage of the events. To check out all of our short cut videos of Volkswagen Group Night head over to Autoblog dot com slash short dash cuts. For Autoblog, I'm Adam Morath. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.

Pope meets with family who drove 13,000 miles to see him

Pope Francis met Sunday with a family who made a 13,000-mile trip over 194 days from Argentina to Philadelphia in an old Volkswagen van. Francis spent time with fellow Argentinians Catire Walker and Noel Zemborain and their four children, talking about their visit and praying. Zemborain told the Associated Press that Francis told her that they were crazy to drive so far with their children. She said it was like meeting an old friend and Francis hugged the children. "We couldn't believe it. They called us this morning (and) we were like in shock," she said after Sunday night's Mass. "It is like being with an old friend. He was so warm. He told us we were crazy. He made jokes. "The children got to hug him a lot. They couldn't leave him. Not at all protocol, not at all formal, it was like being with a friend." Walker and Zemborain quit their jobs in food service and marketing to lead their children on the unforgettable tour of the Americas, using savings and soliciting donations to fund the trip to the World Meeting of Families in Philadelphia. Along the way they made 12 border crossings and stayed with dozens of host families, did lots of sightseeing and documented the trip online. They schooled their children — Cala, 12; Dimas, 8; Mia, 5; and Carmin, 3 — with the help of a distance learning program. The family said they got a call at 6 a.m. Sunday that Francis wanted to meet with them at the Saint Charles Borromeo Seminary, where he stayed this weekend. Francis told the family he had been following their trip, they wrote in a Facebook post. Zemborain, Walker and the kids plan to continue traveling until November, when they will fly home from Miami. They were going to send the van by ship, but then a relative volunteered to drive it back to Buenos Aires from Florida. Francis celebrated Mass on Sunday that drew hundreds of thousands to downtown Philadelphia. The Associated Press contributed to this report.