🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Prosecutors search Volkswagen headquarters in new emissions investigation

Published 03/20/2018, 10:55 AM
© Reuters. FILE PHOTO: VW Golf cars are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg
PSHG_p
-
VOWG_p
-

BERLIN (Reuters) - German prosecutors said on Tuesday they had searched Volkswagen's (DE:VOWG_p) headquarters as part of a new investigation into whether the carmaker had overstated the fuel efficiency of more vehicles than previously disclosed.

The news is the latest setback in the German company's efforts to move on from a 2015 scandal in which it admitted to cheating U.S. emissions tests on diesel engines.

Prosecutors from the city of Braunschweig searched 13 offices at Volkswagen's (VW) headquarters in nearby Wolfsburg at the start of March, seizing documents and computer files that will now be reviewed, a spokesman for the prosecutor's office said, confirming a report by German magazine WirtschaftsWoche.

They were checking a statement issued by VW on Dec. 9, 2015 - about three months after its "dieselgate" scandal broke in the United States - over suspicions its contents were incorrect

In that statement, VW said its own investigations found it had understated fuel consumption, and hence carbon dioxide (CO2) emissions, on no more than 36,000 vehicles.

That was much lower than its preliminary estimate of around 800,000 diesel and gasoline vehicles produced five weeks earlier, which caused VW to warn it could face a 2 billion euro ($2.5 billion) hit to profits from the disclosure.

VW also said in its December 2015 statement that it had found no evidence of unlawful alterations to CO2 emissions data.

Prosecutors said on Tuesday they were investigating unknown individuals over suspicions of market manipulation.

VW, Europe's biggest carmaker, confirmed the searches, but declined further comment.

At 1410 GMT, its shares were little changed at 160.35 euros.

Separately, Braunschweig prosecutors are investigating VW's former CEO Martin Winterkorn, former finance chief and current chairman Hans Dieter Poetsch, and current VW brand CEO Herbert Diess over possible market manipulations related to the dieselgate scandal. VW has denied any market manipulations.

Manfred Doess, head of legal affairs at VW's majority stakeholder Porsche SE (DE:PSHG_p), said on Tuesday he did not expect the latest inquiry to lead authorities to press charges against VW.

"In my judgement, nothing will come out of this," Doess said at the holding firm's earnings press conference.

Since its dieselgate scandal, VW has launched a multibillion-dollar investment in electric vehicles and mobility services as part of an attempt to rebuild its image.

© Reuters. FILE PHOTO: VW Golf cars are pictured in a production line at the plant of German carmaker Volkswagen in Wolfsburg

($1 = 0.8147 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.