For those who can read FT,
this is an excellent dissection of the mess VAG have got themselves into.
I particularly like their statement on the climb down of 3.0l engines.
To set the scene..
VW’s communication problems intensified last month. On November 2, the EPA said it had uncovered another defeat device in Audi, Porsche and VW 3-litre diesel cars, which affects 85,000 vehicles.
VW’s response was both quick and terse. “Volkswagen AG wishes to emphasise that no software has been installed in the 3-liter V6 diesel power units to alter emissions characteristics in a forbidden manner,” it said in a press release that evening. Investors were alarmed that VW seemed to be picking a fight with the US regulator, which has the power to fine it substantial sums of money.
Followed by...
But the worst was still to come. On November 23, Audi — VW’s luxury brand — reversed course and admitted that there was an illegal defeat device after all in the 3-litre cars.
The damage to it and VW from this volte-face is still unknown but is likely to be considerable whether through fines or lawsuits.
If you have never worked for a very old German company full of predominantly German executives on the board, you would have a very hard time understanding the attitude which is being displayed to the US and the rest of the world. Not only am I not particularly surprised, I am watching with somewhat amused indifference to a company engaged in the time worn pursuit of digging their own grave with a size 10 shovel.
People who have spent their whole working life climbing a single corporate ladder, who insist that peers as well as underlings use the honorific Herr Doktor to honour their degree and achievement, are unlikely to be impressed by civil servants and unlikely to believe that much harm or damage can come of it.
Hence the calls from investors to replace their chairman with someone from outside of VAG and non German.... I shall watch the news to see the outcome of the meeting tomorrow. I'm sure fur will be flying.