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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.

Recharge Wrap-up: Mercedes gets F1 efficiency, EV charging in Vermont, VW e-Golf to use Bosch

Efficiency equals performance, especially in the case of Formula 1 racing. The Mercedes AMC Petronas team points to several key efficiency technologies it uses to get the most out of its cars. And if their utter dominance so far this season is testament to this relationship, perhaps we should pay attention. Mercedes highlights hybrid tech, turbocharging, aerodynamics, lightweight construction, tribology (both in making internal components and lubricants more slippery) and simulation as crucial to getting around the track faster than anyone else. These just happen to be some of the same things that make the cars we drive on public roads more fuel-efficient. Learn more in the press release below. It's a good read. Brammo, maker of sweet electric motorcycles, is teaming up with TEAM Industries to make drivetrains for electric vehicles. TEAM, which specializes in drivetrain technology, will also become an investor in Brammo as part of the partnership. "The electric vehicle market is a growth market," says TEAM CEO and President David Ricke, "and TEAM and Brammo will be providing a wide range of solutions for OEM manufacturers." Read more over at EV World. Vermont celebrated the installation of a new EV charging station as part of a Green Energy Corridor between Boston and Montreal. When finished, drivers will be able to make the whole trip in an EV with access to charging along the way. For $5, customers can charge their vehicle in about 30 minutes at the Red Hen Baking Company in Middlesex. There are currently only about 700 EVs on the road in Vermont. The state has a goal to get 90 percent of its energy from renewable sources by 2050, and getting more EVs on the road is crucial to that mission. Vermont hopes that expanding the charging infrastructure will convince more people to go electric. Read more at Vermont Public Radio's website. For it's new e-Golf, Volkswagen will use Bosch chargers for home installation and ChargePoint stations at its dealerships. Bosch will have various 240-volt options for the home, and will also provide installation. e-Golf customers will also get a free ChargePoint membership, and will have access to the company's network of charging stations worldwide. The 2015 e-Golf goes on sale in the US later this year. Read more in the press release below. Synergies between F1 and Road Car Development: Efficiency equals performance In Formula 1 Racing, performance is everything.

Autoblog Minute: VW financial woes continue, Tesla Model X dazzles

Volkswagen sees its financial woes continue, and Tesla reveals the all electric Model X crossover. Autoblog's Greg Migliore reports on this edition of Autoblog Minute Weekly Recap. Update: The post has been updated to show the complete range of estimated MPGe specs for the Model X P90D and not just the 92 combined MPGe. Show full video transcript text [00:00:00] Volkswagen sees its financial woes continue, and Tesla reveals its all electric Model X crossover. I'm Senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. Volkswagen has been removed from the DOW Jones Sustainability Index, or DJSI. A decision that takes effect on October 8th. Removal from this key index is yet another black eye for the embattled automaker and it [00:00:30] indicates VW's fall as a company leads the way in economic, environmental and social performance. Ever since the emissions scandal broke the world's top selling automaker's stock has struggled. Reports estimate VW's losses to be a staggering 30.8 billion dollars. Tesla rolled out the Model X this week. A live web-stream showed us what to expect. Like, how the Falcon Wing doors adapt to tight parking spots and low garages. Towing capacity [00:01:00] was also demonstrated. The CUV is said to be able to haul 5,000 pounds, while carrying 7 passengers and luggage. Still, there was no mention of how towing would affect battery life or the range of the all electric crossover. The Model X also boasts a giant air filtration system with a "Bioweapon Defense Mode," a feature that is said to protect passengers against bacteria, harmful gasses and as Elon Musk joked, possible apocalyptic events. [00:01:30] Stay tuned. According to early EPA estimates, the Model X 90D has a range of 257 miles with 90 MPGe city, 94 highway and 92 combined MPGe. Those are the highlights from the week that was. Be sure to check out my full weekly recap this Saturday. Plus I'll have some added insight into Mazda's new sports car. For Autoblog, I'm Greg Migliore. 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. Tesla Volkswagen Crossover Diesel Vehicles Electric Autoblog Minute Videos Original Video vw diesel scandal