Large money transfers initiated by former Volkswagen CEO Martin Winterkorn early last year have German investigators wondering if the executive may have believed a criminal charge was incoming.

Already indicted in the U.S. on fraud charges stemming from the company’s diesel emissions scandal, Winterkorn (seen above with Yoko Ono) remains under a cloud of suspicion in his homeland. Though he’s claimed no early knowledge of the diesel engine manipulation, the former top boss remains under scrutiny from methodical German prosecutors who recently arrested Audi CEO Rupert Stadler.

Recently, the probe’s focus turned to large sums of money leaving the country in the lead-up to the U.S. indictment. (Read More…)

The past week has seen a flurry of trade trade announcements — none of them particularly promising for the United States. After a brief moment where President Donald Trump’s tariff threats seemed to have a positive impact on the European Union, Germany threw new support behind China as the People’s Republic issued a stunningly large 40-percent retaliatory tax on vehicles imported from America.

While Europe and the U.S. still might work out a zero tariff deal on automobiles, the recent activity has led Trump to respond with another warning. He now claims if the region cannot engage in fair trading practices with the United States, he’ll further restrict imported cars. (Read More…)

China and Germany signed a collection of commercial accords valued at $23.5 billion this week. Meanwhile, the nations’ leaders publicly affirmed their commitment to a multilateral global trade order, while the United States adopts a more protectionist policy.

“We both want to sustain the system of World Trade Organization rules,” German Chancellor Angela Merkel said during a press conference. Chinese Premier Li Keqiang, also present, agreed and stated protectionism must be prevented for the good of the global economy.

Chinese President Xi Jinping has already pleaded for governments to maintain an open trading policy. “We reject selfish, shortsighted, closed, narrow policies, [we] uphold World Trade Organisation rules, support a multi-lateral trade system, and building an open world economy,” Xi said in an incredibly hypocritical speech from last month.  (Read More…)

Part III of this Rare Rides series explored how NSU readied itself to re-enter the car market and end its longstanding production tie-up with Fiat. Shortly after the painful divorce from the Italians, NSU’s first rotary-powered car was ready.

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Part II of the NSU story gave some color to the company’s first bout of financial trouble, and how it passed on a Ferdinand Porsche design that would go on to become the Volkswagen Beetle a few years later.

As we left off last time, NSU and Fiat were locked in a longstanding disagreement about who could brand which cars in which way.

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In Part I of this four-part NSU Rare Rides series, we covered the beginning of the NSU brand and its initial product offerings — which included knitting machines. The company moved into bikes and motorcycles, as well as a three-wheeler considered a midpoint between motorcycle and car.

The engineers were certainly busy, but all was not well over at the bank.

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The fresh threat of new automotive and parts tariffs from the United States has everyone up in arms. We recently published an exhaustive list of comments manufacturers and local governments made to the U.S. Commerce Department. They, along with suppliers, universally despise the idea and are doing everything in their power to convince the Trump administration to reconsider. Many are even discussing the grim prospect of layoffs and suspending investments.

However, the president remained firm on doing whatever it takes to bolster domestic production and U.S. automotive exports while the world tried to make sense of his strategy. Was this a madman playing hardball and gambling with the industry’s future, or the work of a master dealmaker forcing others to come to the table? Perhaps a little of both?

Earlier this week, the U.S. ambassador to Germany told German car executives that President Donald Trump would suspend threats to impose tariffs on cars imported from the European Union if the European Union lifts duties on U.S. cars. But the wildest part of all of this is that both the automakers and the German government seem to be in support of it.  (Read More…)

Back in the 1960s, a little German car company decided to spend a lot of money to create a new-to-them type of engine. The car company in question was NSU, and the engine that cost them so much money was a Wankel.

In a first-ever for the Rare Rides series, this will be a four-part entry. Come along as we explore the NSU brand and the Spider; a tiny roadster which ended up almost entirely responsible for the demise of its parent company.

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The organizers of televised U.S. awards shows, who annually serve up a night of lectures, sermons, hypocrisy, and guilt for an increasingly small audience, should realize that the show doesn’t necessarily have to go on.

It’s certainly not going on in Germany. Axel Springer, a top publishing house for numerous German media sources, including AutoBild, has now wrestled the prestigious Golden Steering Wheel award out of everyone’s hands. There’ll be no thanking of grade school teachers by auto execs this year. Blame, well, the auto industry. (Read More…)

Rupert Stadler, chief executive officer of Audi AG, was arrested in Munich Monday morning on suspicion of fraud, according to German prosecutors.

The CEO, who took the helm at Audi in 2007 after joining the company in 1990, was taken into custody following a years-long probe into Volkswagen Group’s emissions cheating. While the automaker has already paid a steep price at home and abroad for its defeat device-equipped diesel engines, today marks the highest profile arrest so far in the ongoing investigations.

According to German media, prosecutors claim Stadler poses a flight risk, meaning he’ll remain in custody for the time being. (Read More…)

In 2017, the U.S. hit Volkswagen with a $4.3 billion fine as part of the company’s plea agreement for violating of the Clean Air Act. It was a rough ride for the automaker, caught using defeat devices on its diesel engines, but it brought the scandal more or less to a close in America.

An ocean away, it seemed nothing would come of the endless raids by German authorities on VW-owned facilities. Apparently, the wheels of justice just turn a little slower in Europe, as the automaker was fined 1 billion euros on Wednesday. It’s one of the largest financial penalties ever imposed on a company by German authorities.  (Read More…)

There’s been quite a bit of the old “he said, she said” as the global trade war between developed nations coalesces. Germany has not covered U.S. President Donald Trump’s trade policy favorably, not that it has much reason to. His new tariffs on imported steel and aluminum has tested relationships with numerous countries and, while it isn’t the biggest exporter of metal to the United States, Germany has something to lose. Likewise, proposed duties on passenger vehicles have sincerely rubbed Deutschland the wrong way.

However, the issue was further complicated this week after a gossipy report surfaced claiming Trump told French President Emmanuel Macron in April that he would continue hampering the European auto manufacturers until there are no Mercedes-Benz vehicles driving in America.  (Read More…)

It’s open season on compression ignition vehicles in the Fatherland. The birthplace of the diesel engine now says German cities can implement diesel driving bans whenever, and wherever, they want.

The Friday ruling by the country’s top court comes after a lawsuit against Germany and four other European Union member states by the EU, the result of higher-than-allowed air pollution levels in numerous urban areas.

“Thanks, dad,” the country’s auto industry must be thinking. (Read More…)

Volkswagen’s new chief executive officer, Herbert Diess, is believed to have met with the United States’ Department of Justice and Federal Bureau of Investigation last week to discuss the manufacturer’s emissions scandal. Details on the matter are scare at present, but the meeting would explain why the U.S. was willing to provide the CEO with a safe-passage guarantee.

While VW has previously stated its cooperation in various investigations, it declined to comment on Diess’ alleged visit to federal authorities. (Read More…)

Shortly after the United States formally accused former CEO of Volkswagen Martin Winterkorn of criminal wrongdoing related to the company’s diesel emission scandal, it decided to let the company’s new boss know that he’s safe to visit whenever he likes. The U.S. Justice Department has agreed to give Herbert Diess a safe-passage deal that allows him to travel without fear of being arrested.

Diess was also given the country’s assurance that he’ll be given advance notice if prosecutors eventually decide to charge him over the emissions cheating issue. So far as we know, no such deal exists for his predecessor, Matthias Müller, who replaced Winterkorn in September of 2015.  (Read More…)