Active Stocks
Mon Mar 18 2024 15:55:53
  1. Tata Steel share price
  2. 149.60 5.69%
  1. Tata Motors share price
  2. 972.20 2.75%
  1. ITC share price
  2. 417.40 -0.51%
  1. State Bank Of India share price
  2. 730.70 -0.18%
  1. ICICI Bank share price
  2. 1,082.00 0.32%
Business News/ Auto / VW denies charges its chairman knew about Dieselgate
BackBack

VW denies charges its chairman knew about Dieselgate

A German newspaper has reported that Hans Dieter Poetsch , Volkswagen's finance head at the time of the dieselgate, knew of violations as early as June 2015

Volkswagen said in a statement on Sunday that it had been aware of the allegations for some time. Photo: AFPPremium
Volkswagen said in a statement on Sunday that it had been aware of the allegations for some time. Photo: AFP

Frankfurt: Volkswagen AG has denied allegations that chairman Hans Dieter Poetsch knew about the carmaker’s emissions test cheating almost three months before U.S. authorities made it public in September 2015. Citing internal documents from investigators, German weekly Bild am Sonntag reported that Poetsch, VW’s finance head at the time, learned about the carmaker’s violations of the rules in late June 2015.

The paper cites a confidential presentation from the VW legal department, available to investigators in proceedings about the carmaker’s alleged market manipulation.

According to the report, a presentation dubbed “Sacramento" and dated June 24, 2015, stated that US emissions rules were being violated and that the company may also have breached its supervisory obligations.

The paper also reported that, according to testimony from a leading VW lawyer, referred to as “Witness P.", Poetsch received the presentation on 29 June 2015. He was also informed then that 600,000 vehicles in the US were affected and that the financial risk for VW stood at €35 billion ($39.8 billion).

Volkswagen said in a statement on Sunday that it had been aware of the allegations for some time.

“The presentation by the witness P. is emphatically rejected as inaccurate."

The diesel issue was the subject of a number of discussions with Poetsch in the summer of 2015, Volkswagen said.

“However, none of these discussions had the content and quality which could have made capital markets law relevant for Mr. Poetsch."

Volkswagen added that until the publication of the Notice of Violation by the US authorities on 18 September 2015 it did not have sufficiently concrete indication of a situation that could be share price sensitive.

Poetsch became VW chairman shortly after the “Dieselgate" scandal broke in 2015.

Plaintiffs in a market manipulation lawsuit in Germany say Volkswagen failed in its duty to inform investors about the potential financial implications of the emissions test cheating, which has so far cost the company €27.4 billion in penalties and fines.

The company has argued it did not inform investors of the issue because it did not want to endanger the chance of reaching a settlement with the US authorities.

This story has been published from a wire agency feed without modifications to the text.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 09 Dec 2018, 06:24 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App