Berlin - German prosecutors launched an investigation yesterday into fraud allegations against former Volkswagen (VW) boss Martin Winterkorn, showing their determination to get quickly to the bottom of a scandal over rigged emissions tests that has rocked the global car industry.
The German company also suspended three top engineers, sources familiar with the matter said, as it tries to get to grips with a crisis that has knocked more than a third off its market value and could harm Germany’s economy.
VW has admitted cheating diesel emissions tests in the US, but Germany’s transport minister says it also manipulated tests in Europe, where it has much bigger sales, and it faces the worst business crisis in its 78-year history.
Manipulated
The German prosecutor’s office said it was investigating Winterkorn over “allegations of fraud in the sale of cars with manipulated emissions data” based on charges filed by about 10 unidentified individuals.
Winterkorn, replaced as chief executive on Friday by company veteran Matthias Mueller, said when he quit last week that he was not aware of any wrongdoing on his part and wanted to give the company a new start.
The crisis is an embarrassment for Germany, which has for years held up VW as a model of its engineering prowess and has lobbied against some tighter regulations on car makers.
The German car industry employs more than 750 000 people and is a major source of export income.
“The car industry is crucial for the German economy. It (the scandal) can have a big impact on the German economy,” deputy finance minister Jens Spahn told a conference.
In a sign of VW’s own efforts to tackle the crisis, sources close to the matter said it had suspended Heinz-Jakob Neusser, the head of brand development at its core VW brand.
Also suspended were Ulrich Hackenberg, the head of research and development at premium brand Audi, who oversees technical development across the group, and Wolfgang Hatz, research and development chief at sports-car brand Porsche, who heads group engine and transmissions development, they said.
One source said Hackenberg was taking legal action against the decision. VW and Audi declined to comment, while the suspended executives could not immediately be reached.
Winterkorn, who was at the helm of VW for nine years and was the highest paid chief executive on Germany’s blue-chip DAX stock market last year, also could not be reached for comment.
A source close to VW’s board said its executive committee would meet tomorrow to discuss the appointment of US law firm Jones Day to lead an external investigation.
But the crisis shows no sign of dying down.
Two German newspapers said on Sunday VW’s own staff and one of its suppliers had warned years ago about the illegal use of so-called “defeat devices” to detect when a car was being tested and alter the running of its diesel engine to conceal their emissions of toxic nitrogen oxides.
Environmental campaign group Transport & Environment (T&E) said yesterday there was a wider industry problem, as it published new data showing some new Mercedes-Benz, BMW and Peugeot cars use 50 percent more fuel than laboratory tests indicate.
T&E said its data did not prove other firms were using defeat devices. But it said the gap between lab and road tests had grown to such an extent for emissions of both carbon dioxide and nitrogen oxides that further investigation was needed to discover what carmakers were doing to manipulate results. “The Volkswagen scandal was just the tip of the iceberg,” said Greg Archer, clean vehicles manager at T&E.
ACEA, the European Automobile Manufacturers’ Association, which represents top car makers, has said there is no evidence the use of defeat devices is an industry-wide issue. In a statement yesterday, it said it supported the development of updated testing. US and European regulators have said they are working on tighter rules.
Potential fines
VW’s market value has fallen by more than e25 billion (R390bn) since it admitted to cheating US emissions tests. It faces investigations and potential fines from regulators and prosecutors, as well as lawsuits from cheated customers. Customers and dealers have criticised a lack of information from the company about what will happen to the 11 million vehicles it has said were fitted with defeat devices worldwide.
There were signs yesterday that the vehicles would be recalled and refitted.
REUTERS