When did he know there was a problem?

When did he know there was a problem?

Former Volkswagen chief Martin Winterkorn is under investigation in Germany for alleged market manipulation. Prosecutors in Germany have accused Winterkorn, and another former board member, of withholding information from investors about VW's emissions scandal.

Winterkorn resigned as VW Group CEO last September when it became clear that Volkswagen cheated to pass some models through tough diesel emission test standards in the US. The point of contention is whether he knew about the cheating earlier and failed to act.

Volkswagen said the prosecutors have offered "no new facts or information" and has said before that it has met its disclosure obligations.

When he resigned, Winterkorn said he was standing down "in the interests of the company even though I am not aware of any wrong doing on my part".

The German prosecutor's office in Braunschweig said that the investigation focused on "sufficient real signs" that Volkswagen had not alerted investors as soon as they were aware of the possible financial damage of the emissions manipulation. Germany's financial watchdog, the Federal Financial Supervisory Authority, requested the probe, prosecutors said.

Volkswagen issued a statement that suggested there is nothing new in the latest developments.

"Today's press release from the Braunschweig public prosecution service does not cite any new facts or information on any serious breaches of duty by the members of the Board of Management now accused."

In March there were reports that Winterkorn was alerted to US diesel emissions tests problems in 2014, but that the significance of the alert may have been missed at the time.

Show the press release

Statement by Volkswagen AG on the press release from the Braunschweig public prosecution service

The initiation by the Braunschweig public prosecution service on June 17, 2016 of investigation proceedings against two members of the former Board of Management only became known to Volkswagen AG immediately before today's publication of the corresponding press release.
Today's press release from the Braunschweig public prosecution service does not cite any new facts or information on any serious breaches of duty by the members of the Board of Management now accused.

Volkswagen AG's recommendation to the Annual General Meeting concerning formal approval of the actions of the Supervisory Board and Board of Management is based on information currently available from the comprehensive although not yet concluded investigation into the diesel matter by the independent investigator, U.S. law firm Jones Day. On this basis, law firm Gleiss Lutz carried out a comprehensive legal review, which has been confirmed by Professor Wulf Goette (retired chief justice at the German Federal Court of Justice). The Board of Management similarly obtained the advice of law firm CMS Hasche Sigle. In both of these legal reviews, according to information currently available, no serious and manifest breaches of duty on the part of any serving or former members of the Board of Management have been established that would stand in the way of granting formal approval at this time. This is the basis for the recommendation concerning formal approval.

As has been planned for some time, the Supervisory Board and the Board of Management will once again obtain legal advice from the aforementioned law firms prior to the Annual General Meeting concerning whether there is any new information to be taken into account with regard to formal approval of the actions of the members of the Board of Management and Supervisory Board for fiscal year 2015.

Original source: VW Group

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