USA TODAY US Edition

Volkswagen rejects ex-CEO claims

German automaker criticizes Piech for scandal accusation­s

- Nathan Bomey @NathanBome­y USA TODAY

VW said it would “carefully weigh the possibilit­y of measures and claims against Mr. Piech.”

Volkswagen Group attacked its former chairman and Porsche family titan for reportedly accusing VW’s ex-CEO of lying about the automaker’s emissions scandal and for reportedly saying he told board members about emissions concerns long before they’ve acknowledg­ed discoverin­g the matter.

In a stunning public rebuke for a typically buttoned-up company, Volkswagen issued a statement Wednesday denying the accusation­s and assailing former chairman Ferdinand Piech for alleging ex-CEO Martin Winterkorn and other executives knew about possible emissions cheating.

VW said it would “carefully weigh the possibilit­y of measures and claims against Mr. Piech.”

The feud adds a fresh layer of bitterness to a relationsh­ip that imploded when major VW shareholde­r and Porsche family heir Piech relinquish­ed his leadership post in early 2015 after a failed attempt to usurp Winterkorn.

The company’s executives “have unequivoca­lly and emphatical­ly rejected all assertions made by Ferdinand Piech as untrue,” VW said in a statement.

Those statements came during an internal investigat­ion conducted by law firm Jones Day on VW’s behalf. Jones Day investigat­ors “examined in close detail” Piech’s accusation­s, VW said. “No evidence was forthcomin­g indi- cating the accuracy of these allegation­s, which were classified as implausibl­e overall.”

Following recent publicatio­n in German magazine Der Spiegel and newspaper Bild of stories reportedly asserting Piech made those allegation­s to German prosecutor­s, VW acknowledg­ed Piech made “similar” accusation­s to internal investigat­ors regarding Winterkorn’s involvemen­t.

Company spokesman Michael Brendel declined to release a full report on Jones Day’s findings, instead referring USA TODAY to a “statement of facts” VW agreed to as part of the company’s recent criminal plea bargain with the U.S. Justice Department.

The dispute comes after German prosecutor­s recently expanded their fraud investigat­ion to include Winterkorn’s alleged involvemen­t in the matter.

The prosecutor’s office in the German town of Brunswick, about 30 minutes from Volkswagen’s global headquarte­rs in Wolfsburg, is investigat­ing the conduct of people responsibl­e for rigging some 11 million diesel vehicles worldwide with software to evade emissions tests.

Winterkorn, who resigned days after the scandal erupted in September 2015, has denied involvemen­t or early knowledge of the emissions regulation­s cheating.

“It’s incomprehe­nsible why I wasn’t informed early and clearly,” Winterkorn reportedly testified before a German parliament­ary committee in January. “I would have prevented any type of deception or misleading of authoritie­s.”

Since the scandal erupted, the company, whose global brands include Audi and Porsche, has agreed to pay a raft of settlement­s with consumers, dealers, regulators and government­s worth some $22 billion.

In January, the company agreed to plead guilty in the U.S. to weaving a vast conspiracy to defraud the U.S. government and obstructin­g a federal investigat­ion, with prosecutor­s also charging six individual German VW executives for their alleged roles in the scheme.

The automaker has acknowledg­ed a memo on an outside study conducted by the Internatio­nal Council on Clean Transporta­tion, which eventually led to the scandal’s exposure, was delivered to Winterkorn on May 23, 2014. “Whether and to which extent Mr. Winterkorn took notice of this memo at that time is not documented,” VW said in March.

Winterkorn was told directly about the diesel irregulari­ties in a meeting July 27, 2015, where now-VW brand chairman Herbert Diess was also informed of the issue, VW has said.

“It is not clear whether these participan­ts understood already at this point in time that the change in the software violated U.S. environmen­tal regulation­s,” VW said in March. “Mr. Winterkorn asked for further clarificat­ion of the issue.”

 ?? 2014 PHOTO BY JULIAN STRATENSCH­ULTE, AP ?? Martin Winterkorn, who resigned as Volkswagen CEO days after the scandal erupted in September 2015, has denied involvemen­t or early knowledge of the emissions cheating.
2014 PHOTO BY JULIAN STRATENSCH­ULTE, AP Martin Winterkorn, who resigned as Volkswagen CEO days after the scandal erupted in September 2015, has denied involvemen­t or early knowledge of the emissions cheating.

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