Volkswagen AG’s legal bills continue climbing and are about to get larger as South Korean authorities announced they are preparing criminal charges against the German automaker.
South Korea’s Ministry of Environment said it plans to file criminal charges against a local Volkswagen unit in response to “insufficient” recall plans proposed by the automaker over its now-infamous defeat devices that have allowed it to skirt emissions standards in countries around the globe.
Audi Volkswagen Korea managing director Johannes Thammer will also be facing criminal charges by the ministry after it found the automaker’s Jan. 6, recall proposal did not explain how the emissions problem initially occurred or specify how it would be fixed.
Both the California Air Resources Board and U.S. Environmental Protection Agency also have criticized Volkswagen in the United States for failing to come up with a satisfactory recall plan.
In the U.S., Volkswagen was forced to suspend sales of passenger cars equipped with diesel engines that had been central to the company’s efforts to build its American business.
However, Volkswagen now faces a struggle with CARB and the EPA over recalling nearly 500,000 vehicles sold with diesel engines that have failed to meet the emission requirements set by federal regulators and the state of California.
CARB said Volkswagen’s plan was unacceptable for a variety of reasons, including that it did not adequately identify the affected vehicles; did not include a sufficient method for obtaining the car owners’ names and addresses; and did not include adequate information about how the fix would affect future emissions results.
(VW appoints new chief for North America. For more, Click Here.)
“VW’s submissions are incomplete, substantially deficient and fall far short of meeting the legal requirements,” Annette Herbert, head of the agency’s emissions compliance, automotive regulations and science division wrote in a letter to VW executives.
The state agency also issued a separate formal notice against the German automaker, alleging it had violated the state’s clean air regulations — a finding will likely mean fines for VW.
The state agency is working to quantify the damage done by the excess nitrous oxide and particulates spewed into the air.
The U.S. Environmental Protection Agency, which is also investigating VW, issued a statement saying it agreed with California regulators but was operating on a different timetable.
(Click Here for details about VW’s Mueller defending automaker’s honor.)
Meanwhile, the management turmoil, which began with the first disclosure of the cheating scandal last fall, continues unabated.
Volkswagen Chief Executive Matthias Mueller has the backing of top players on the supervisory board, a spokesman said, dismissing rumors that support for him is crumbling due to his handling of the emissions crisis in the United States.
“The position of Mueller has never been up for discussion,” a spokesman said in response to questions from Reuters on Tuesday. “Any speculation to the contrary is without foundation and is emphatically rejected.”
He said the investigation into the emissions scandal led by U.S. law firm Jones Day had made “considerable further progress” in past weeks and VW should be able to provide a “substantial report” on the matter at the April 21 annual shareholder meeting.
(To find out why dozens of major shareholders suing Volkswagen, Click Here.)
Germany’s Bild am Sonntag weekly newspaper reported that doubts were growing among board members, most notably VW’s powerful labor representatives, over Mueller, who took the helm at Volkswagen last September.
I don’t think South Korea has even been noted for it’s ethical judicial system or government. What many people outside of Germany do not understand is the technical aspects of the VW diesel emissions issues and the language barriers. When Mueller told the assembled media at the IAA that VW did not lie about the emissions issues and that the issue was a misunderstanding of the EPA’s decree, most people had no clue that Mueller was talking about the Audi designed 3.0L V6 diesel engine – which actually meets all U.S. and Euro emissions requirements and more. The clueless media condemned Mueller and accused him of lying because the media had no clue what he was telling them. Mueller was 100% correct that VW did not lie about anything regarding the diesel emissions issue. VW executive management like everyone else was duped by a small group of rogue engineers and programmers. These are the people who should be prosecuted. But some in the media who enjoy yellow journalism have been campaigning to have Mueller dismissed when he and many other people at VW are working day and night to meet the mandates of the EPA and other government agencies around the globe and to present viable solutions for the EA189 series diesel engines that are noncompliant.
In the U.S. VW has made a good faith effort to correct all emissions issues but now that the EPA has VW over a barrel, now they want VW to remove older diesels from the roadways even though these vehicles can be made fully compliant with EPA regs that were in force when the vehicles were produced and sold. Now the EPA wants to impose the current absurd exhaust emissions requirements on vehicles that were sold almost 8 years ago. This is pure blackmail by the EPA.
More than likely VW is going through a similar deal in South Korea where they make up the rules as they go. There is absolutely no reason why VW should need to do anything other than make the vehicles fully compliant with the emissions regs in effect at the time the vehicles were sold. Trying to make engines sold eight years ago meet today’s emissions requirements is outrageous and preposterous.
Every unscrupulous bottom feeder is crawling out from under their rock to try and cash in on this witch hunt against VW yet no one can explain why the VW emissions deal warrants $20+ BILLION fines while GM literally KILLED 100+ people with a defective ignition switch and cover-up yet GM is NOT subjected to BILLION dollar fines nor to 400+ U.S. lawsuits. Why is VW the only one to be abused by the U.S. EPA and siren chasers? I’d like to know where the justice is in the actions of the EPA.
Fix the cars so they comply with all emissions issue and get on with life. Fine those truly responsible for the emissions violations. Don’t allow unscrupulous government agencies to violate law or abuse their power over a minor issue. The EPA is turning this tempest in a tea cup in to a career opportunity to fleece VW and damage millions of people, which has happened already.
GT you continue to beat a dead bug. The initial response of vw was to readily admit their fault why do you not accept the admission of guilt by the guilty party? Also the folks that do have scruples are the EPA and Thank God for them and what they do – PROTECT HUMANS!- Why you keep going on this rant is rather hard to understand you are not even close on the science you are screaming into the wind these people STOLE MARKET SHARE FROM COMPLING COMPANIES! It is that simple and they admitted it.
Chris-
It is a pity you have failed to educate yourself on world history, economics and the futility of hate… You need to get your act together in so that you understand what is happening in the real world.
I am defending all who have been harmed by the abuse of power by the EPA. That includes VW, Audi, Porsche owners, VW stockholders, VW’s 650,000 employees who had NOTHING to do with the illegal software emissions violation perpetuated by a rogue group of engineers and programmers at VW. I am defending the millions of people who had NOTHING TO DO with the emissions scandal, who’s world has been turned upside down by the abuse of power by the EPA. I am defending the suppliers to VW and their millions of employees who had NOTHING TO DO with the emissions issue, who have been damaged by the EPA’s abuse of power. THAT’s who I am defending.
VW admitted that a small group of rogue engineers and programmers duped the world with illegal software in the EA189 series VW diesel engines that resulted in the engines emitting a trivial excess volume of pollutants that has INJURED NO ONE.
I’ll stand by my numbers on the emissions because they are based in reality using current EPA regulations of grams per mile of NOx. I have yet to see anyone else invest the time to determine the truth regarding the excess exhaust emissions which is clearly an EPA witch hunt. Talking smack doesn’t make your beliefs true. It just shows your inability to refute the facts and deal with reality. Show me where my math is wrong on the VW diesel engine emissions issue. You can’t. I did my homework and other people including the media should do theirs.
Chris you probably meant that VW stole market share from “competing” companies. That belief is meritless. VW didn’t steal anything. Consumers got MORE than what they actually believed they were getting in that VW diesels with low but non-compliant emissions enjoyed better mpg than the EPA had rated the vehicles. Consumers bought VW diesels because they are reliable, efficient, high mpg vehicles that deliver what their customers desire. If the folks who bought VW diesel powered vehicles felt another brand was a better value or vehicle, that is what they would have bought. No one bought a VW diesel because a small group of people installed illegal software because no one new about the software until researches (NOT the EPA), discovered the trivial emissions issue. You can’t steal market share when consumers are free to vote with their wallet.
I do know that you are OBLIVIOUS to the fact that VW has HUNDREDS of U.S. new car dealerships in the U.S. which create THOUSANDS OF U.S. jobs. You also seem oblivious to the fact that VW has a car factory in Chattanooga, TN and engineering offices in Auburn Hills, MI that creates THOUSANDS of additional U.S. jobs. You also fail to comprehend that suppliers to VW’s CHAT factory have built factories in the U.S. local to VW CHAT to provide components to the VW factory. These vendor suppliers have created THOUSANDS more U.S. jobs because VW decided to build an assembly factory here in the U.S.
WHAT PART OF U.S. JOBS CREATED BT VW DON’T YOU UNDERSTAND?
Your hate and false beliefs regarding VW is blinding you from the reality that the EPA is the ONLY government agency in the WORLD threatening VW with BILLION DOLLAR FINES over a TRIVIAL emissions issue. The EPA’s response is grossly disproportionate to the crime and the EPA is clearly on a witch hunt. As a result of the EPA’s over zealous attack on VW over a trivial emissions violation, MILLIONS OF PEOPLE’s lives have been FOREVER DAMAGED including people and jobs in the U.S.! How much PROOF do you need of the EPA’s damage to society before you understand that the EPA is NOT protecting humans, they are in fact DAMAGING millions of people over a trivial exhaust emission issues perpetuated by a small group of people within VW that INJURED NO ONE?
You seem to have NO ISSUE with GM KILLING 100+ people by a small group of engineers within GM who covered up a defective ignition switch. HOW CAN THAT BE that you don’t care about GM KILLING 100+ innocent people but you believe VW is evil for a trivial exhaust violation that is the equivalent of jay walking? You have a VERY distorted view of reality that your HATE will never correct.
For the record I have spoken directly with the EPA regarding their claims and actions against VW and they didn’t have any reasonable nor technical basis for the outlandish threats of billion dollar fines against VW for the trivial emissions violation.