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A group of minority investors, who have reportedly seen their share values plummet as much as 40% when “dieselgate” hit the press, were initially refused a request for independent experts to investigate Volkswagen by the major shareholders. The minority shareholders reportedly took the disagreement to the German courts, and the Northern German appeal court has since allowed this group of Volkswagen investors to appoint an independent investigator to scrutinise what happened and who knew what about the emissions cheating scandal.
This potentially landmark investigation could uncover more about the senior staff and directors at the company who knew about the so-called “defeat devices” all along!
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Former Volkswagen Group executive Oliver Schmidt reportedly wrote to a judge saying he feels “misused” by the German car-maker over the emissions cheating scandal. Schmidt pleaded guilty for his part in the atrocity and was handed a seven-year prison sentence, but he seems to be trying to land the blame on former bosses.
In his letter, Schmidt reportedly wrote:
“I must say that I feel misused by my own company in the diesel scandal, or ‘Dieselgate’.”
The former VW executive went on to accuse Volkswagen of ‘coaching’ him to lie about the diesel emissions some years ago to keep the cheating under wraps. He admits that he regrets not telling the truth to regulators.
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On 20th September 2015, Volkswagen engineers and top managers reportedly discussed the extent of the emissions cheating before publicly admitting they’d installed the so-called “defeat device” software into their U.S. vehicles. The announcement saw the company’s share prices plummet and billions of pounds wiped off its market value.
The impact was then further exacerbated when Volkswagen made another announcement two days later confirming the full extent of Volkswagen group vehicles across the world that were affected. Apparently, this delay in reporting the full extent of the scandal may land VW in further trouble…
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When VW chairman Hans Dieter Poetsch defended the decision not to publish the elusive Jones Day report, we weren’t happy; and we weren’t surprised
Poetsch stated that he defends the decision not to publish to Jones Day report and suggested that the law firm’s findings were included in the guilty plea agreed with U.S. authorities. If that’s the case, why withhold the report? If VW’s stance is that the information included in the plea and / or the summary released is enough to grasp the concept of the report, why not release the full report? What possible reason could there be to not publish it, unless they were hiding something?
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The pressure on Volkswagen bosses intensified earlier this year when asset management company Hermes called for a vote of no confidence against Volkswagen management.
More importantly, further focus is being drawn on the findings of the elusive Jones Day report; a report that may contain key evidence about the Volkswagen Emissions Scandal that has yet to be published. The report was the result of a meticulous investigation into the scandal, but all that has been given to the public and governments is a summary, which we say is not good enough.
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Two years after Volkswagen admitted there are “emissions irregularities” with their vehicles, prosecutors are still investigating the company to find out which employees were involved in facilitating the scandal, who knew what, and who played a part in hiding the deceit from authorities.
Zaccheo Giovanni Pamio is reportedly being held in a German jail for his alleged participation in the scandal while working as the head engineer of thermodynamics for Audi’s engine development department. He has since reportedly provided German investigators with statements and evidence of his involvement and knowledge of the scandal.
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Former VW executive, Oliver Schmidt, pleaded guilty for his participation in the automaker’s emissions scandal that was revealed to the public in September 2015.
According to reports, some employees and executives had been working on the so-called “defeat device” for approximately a decade, starting in May 2006. The employees reportedly agreed to effectively deceive regulators when they realised that VW engines wouldn’t be compliant with emissions standards.
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Following denial after denial when it comes to guilt and responsibility, former VW executive, Oliver Schmidt, is to plead guilty for his part in the scandal.
U.S. Attorney General Loretta Lynch quite rightly stated: “Volkswagen obfuscated, they denied, and they ultimately lied.”
To hold VW executives accountable is the very least that they can do. Although VW continue to deny compensation to most victims around the world, it’s a positive thing that people are being properly punished for their involvement in what still looks like the biggest automotive scandal to ever occur.
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International arrest warrants have been issued for five former VW officials for their alleged participation in the diesel emissions scandal that erupted in mainstream media in September 2015.
An Interpol “red notice” is usually filed by the U.S. Justice Department where they’re requesting to locate and provisionally arrest an individual pending extradition. The Interpol can’t compel any member country to arrest an individual who is subject to the notice, and it’s for each country to decide what legal value they give to an Interpol notice; e.g., whether or not to arrest the individual or impose an equivalent punishment in their own jurisdiction.
Though Interpol is the international police that issues the notice, the individuals are usually wanted by a country or an international tribunal.
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Since Volkswagen’s “defeat device” behaviour was published in the media in September 2015, the VW Group has received constant limelight ever since. Although German prosecutors remain hopeful that the first legal rulings will be concluded at the end of the year, VW’s chairman believes this will be far from the case.
And we are not surprised!
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In the midst of the criminal and civil probes, Volkswagen expressed their distinct opposition to German prosecutors searching their solicitors’ firm, Jones Day.
VW said that the search was “unacceptable in every respect”.
According to USA Today, the search was conducted as a result of burning questions about whether certain members of the VW managerial board were involved in, or responsible for, the emissions scandal. The German automaker said that the search was a”“clear breach of the principles of the rule of law”, namely the code of criminal procedure. They noted that if they continue to breach these principles, they would “take all action at our disposal against these proceedings”.
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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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