Witch Hunt? Investors Now Demand Volkswagen's Newest CEO Head On A Platter

Union Investment, the third largest asset manager in Germany, believes that the company needs to address in a different manner the crisis, the best option being the appointment of a chairman and chief executive from outside in order to recover from the diesel emissions scandal. Thus, the pressure on Volkswagen’s chief executive is growing in less than two-month time since its assignment, which followed Martin Winterkorn’s resignation.
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TheSteve - 11/13/2015 3:13:11 PM

0 Boost

It doesn't appear to be *just* a diesel emissions scandal. See items below (not in chronological order):

(1) EPA discovers illegally high NOx emissions in 2 liter VW diesels. VW admits they use "defeat software" that causes the engine to behave cleanly only when it's being tested.

(2) Authorities discover VW's CO2 emissions are much higher than stated. VW concedes.

(3) Authorities discover VW's fuel economy numbers are understated. VW admits it was part of the CO2 understatements.

(4) Authorities discover "irregularities" not limited to just 2 litre and smaller diesels. Some gas engines are also implicated. VW concedes.

(5) Authorities identify "irregularities" in some 3 liter VW diesel. VW asserts no cheat devices used, but withdraws sale of all diesel engines in North America. Also withdraws certification application for 2016 diesels because... ahem... they use cheat software to game emissions.

(6) VW testified before US congress that NOx cheat software was done by 2 engineers. Congress finds this incredulous. VW later revises this number to "a handful", then "probably around 40." The latest numbers, today, are guesstimating 100.

(7) VW execs insist they had no knowledge of any wrong-doing... ever... about anything. It's those evil rogue engineers, you see.

(8) Reports by past and present VW employees indicate VW is ruled by a corporate culture of fear and intimidation.

I'm the first to admit I don't know what's really going on in the Volkswagen Audi Group (VAG), but at least to me, it appears that the corruption and unethical operation are widespread, and they run deep. I have no idea how to even begin fixing a problem this big.

MDarringer - 11/13/2015 7:37:37 PM

0 Boost

Sergio to the rescue! Alan Mulally to the rescue! Hire new management from outside the company.

Vette71 - 11/13/2015 10:15:47 PM

+2 Boost

Mulally is smart enough not to take it. The odds of an outsider, especialy a non German, turning that around with 50% owned by the Piech/Porsche families, 20% by the state, along with half the board being members of German labor unions make it impossible. Sergio's ego would make him go after it, only to fail at it. Breaking it up is the only path. Look for the German central government doing something along the lines of the USA/GM deal.

MDarringer - 11/15/2015 5:10:59 PM

0 Boost

The ownership structure is definitely a part of the problem thatt brought on this crisis. In exchange for the inevitable bail out, the Piech/Porsche families should be made to divest 100% of their ownership.

PUGPROUD - 11/16/2015 5:16:05 PM

0 Boost

Whenever there is blood in the water the financial and legal sharks move in to try alter events in a way beneficial to their interests not caring about ordinary shareholders, management, unions, employees dealers, customers or governments. They will get their pond of flesh for sure as VW cannot ignore them as they bleed cash and law suits increase daily.