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In the latest turn of events, VW has indicated that it may bring legal action against a former chairman, Ferdinand Piech. This was after Mr Piech allegedly informed the supervisory board about the potential cheating of diesel emission test in March 2015.
The report that was published stated that Mr Piech had highlighted the issue with the former CEO, Martin Winterkorn, and several other members of the supervisory board.
This suspiciously led to Mr Piech’s exit as Chairman.
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We’ve probably lost count of how many settlements have been made over in the U.S. since the emissions scandal erupted in September 2015.
Volkswagen (VW) has agreed to pay out over $20 (£16.1) billion in a bid to end the civil and criminal lawsuits in America over the emissions scandal. The pay-out extends to around 600,000 vehicles.
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U.S. District Judge Charles Breyer has given his approval for 625 Volkswagen dealers to be paid a fixed sum over 18 months for the negative impact of the VW emissions scandal has caused on their businesses.
Split between the hundreds of dealerships, each one will receive around $1.85 million over the year and a half period. Dealers have reportedly been hit by a mountain of complaints and abuse by disgruntled vehicle owners, and their sales have dropped dramatically due to the huge impact of the scandal on VW’s reputation. Therefore an initial sum of $270 million will be provided for prior payments and an extra $175 million will be given over 18 months for ongoing sales incentives.
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In the midst of the many legal battles and billions of dollars in settlements and fines being paid out so far in the U.S., Volkswagen Executives are facing criminal charges for their alleged roles in the Volkswagen Emissions Scandal too.
It has been reported that six top executives have been accused of a decade-long conspiracy to create the software for their vehicles to cheat official testing. U.S. federal authorities have issued indictments for the executives to be extradited to the U.S. for Trial.
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The VW Group initially set aside $18.2 billion (14.9 billion pounds) to pay for its wrongdoing in the emissions scandal.
However, the way these settlements are going, the German automakers will have to put their cheque-books on standby, as VW are set to pay-out another $4.3 billion (£3.5 billion) in the latest settlement.
There is, of course, our action here in the U.K. as well which will cost them a pretty penny too.
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When former VW CEO, Martin Winterkorn, resigned following the emissions scandal in 2015, I’m sure he didn’t expect to be defending a lawsuit himself.
A U.S. District Judge has ruled that Mr Winterkorn must defend a suit that is brought by American pension fund investors. The suit alleges that VW are guilty of not warning or informing the market/investors ‘in a timely fashion’ about the emission scandal; instead leaving investors to find out about their pension funds after the scandal had been publicised and splashed across the news.
Following the publication of VW’s emissions scandal in September 2015, the lawsuit notes that VW’s market value for shares fell by $63 billion (£52 billion).
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We’ve been made aware that Volkswagen, via their instructed solicitors dealing with the ongoing Volkswagen Emission Scandal (“dieselgate”), is refusing to cover dealers who may be losing millions as a result of the scandal.
It’s easy to see that the dealers could lose a fortune from unsold vehicles and being forced to lower prices as a result of any impact caused by the emissions scandal. It only seems fair that dealers – whether they’re general or independent dealers, or dealers who specifically only sell Volkswagen, Audi, SEAT, and Skoda vehicles – be compensated for their costs and losses.
Sadly, they’re in the same boat as the rest here in the UK, as it appears that Volkswagen UK are intent on not only refusing compensation to vehicle owners, but also to dealerships across the country too.
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Amid all the VW investigations and settlement talks, the criminal investigations may have had slightly less media. The update on the criminal side is that a former-VW employee, as the first person to face U.S. criminal charges for the VW emissions scandal, has had his sentencing delayed.
It appears that U.S. District Judge Sean Cox may have cut the engineer, James Liang, some slack as his sentencing date has been pushed back from 1 February 2017 to 3 May 2017. The strategy for doing so was highlighted in Judge Cox’s delay order to “allow more time for defendant’s cooperation in the investigation”.
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After the U.S., it’s arguable that South Korea has become one of the strictest enforcers on the VW Group; and it continues as they have banned the sale of some Nissan, BMW and Porsche (a part of the VW Group) models.
The ban has come as a result of several automakers reportedly fabricating certification documents to make them ‘road worthy’, which has come out off the back of the ongoing VW emissions scandal.
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Following the, some may say, ingenious idea of stripping his Volkswagen (VW) Golf to the bare bones, Joe Mayer’s precedent may be short lived. U.S. District Court Judge Charles Breyer has advised VW owners to return their vehicles for buyback with all original car parts in them.
In mid-December, Mr Mayer was due an appointment for the buyback of his Golf TDI, but was notified that his appointment had been postponed. The dealership representative proceeded to tell him that returning the vehicle in that condition, which had missing doors, seats, car bonnet etc…, “wasn’t in the spirit of the buyback”.
The TDI owner had stripped his car to the bare bones, leaving an “operable” vehicle that technically met the requirements of the recall.
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Volkswagen (VW) has agreed to pay California, which will include paying the California Air Resources Board (CARB), an additional £54 million for the remaining 15,000 vehicles affected in the German automaker’s cheating scandal.
The settlement is reportedly provided with the intentions of mitigating the environmental harm caused by the cheating.
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Affected vehicle owner Joe Mayer has decided that he would try to sell the car back to VW as part of their promised “buy-back” but strip down the vehicle first.
The story has led to a spate of questions about the validity of stripping down a vehicle due for a buy-back, and we’re aware that others may have already followed suit…
This is certainly an interesting story, and quite a conundrum in terms of how Volkswagen has responded!
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