Germany intends to stay on ex-Volkswagen Group CEO Martin Winterkorn after news broke Thursday that the former top executive faces criminal charges in the United States.

The indictment, filed under seal in March, was opened in a U.S. District Court in Detroit on Thursday during VW’s annual meeting in Germany. “If you try to deceive the United States, then you will pay a heavy price,” said U.S. Attorney General Jeff Sessions. “Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company.”

However, the burden of tangible justice will likely fall on Europe. Germany doesn’t make a habit of extraditing citizens for trial, and it’s still conducting its own investigation into VW Group’s emissions-cheating scandal — which it intends to continue.

“Our investigation strategy does not change just because the Americans have filed charges against Winterkorn,” a spokesman for the prosecutors’ office of Brunswick said on Friday. You’ll have to excuse us for not having much faith Germany’s justice system, as its current strategy appears to involve conducting as many raids as humanly possible without any results.  (Read More…)

Former Volkswagen CEO Martin Winterkorn has been charged by U.S. prosecutors with conspiracy and wire fraud, according to an indictment that was unsealed in a Michigan federal court on Thursday. For those of you who have been following the Dieselgate scandal from the beginning, this has been a long time coming.

Winterkorn has been at the epicenter of the emissions-cheating issue since before VW’s earliest admissions and was swiftly removed from his post as the automotive group’s chief executive in 2015. He also had a major falling out with ex-supervisory board chairman Ferdinand Piëch after being confronted on the emissions issue during the Geneva Motor Show.

The two had previously held a very close relationship but a power struggle within the organization appeared to have been brewing for quite some time, making the scandal an important turning point. Piëch became vaguely accusatory of Winterkorn in the aftermath and eventually cut ties with the company and, by extension, his family. All the while Winterkorn was under investigation in both the United States and Germany.  (Read More…)

Plenty of digital ink was invested in Ford’s recent decision to let all their cars rot on the vine exit the small car and sedan market. If the company follows through on its plans, and we have little reason to believe it won’t, we will soon be living in a world absent of Fiestas, Foci, Fusions, and big-brother Taurus.

Other manufacturers *ahem, GM, ahem* will be watching this closely, now that both of its crosstown rivals have largely ditched their cars (recall that FCA deep-sixed the Dart, 200, et al not long ago).

VW is thinking differently, recently introducing a new Jetta and placing a reworked Passat in the pipeline. In an interview with the website Digital Trends, Volkswagen of America boss Hinrich Woebcken explained why.

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Audi is bullish on 48-volt mild hybrids, and its Volkswagen sister division is no different in wanting to see larger batteries take some of the load off of its internal combustion powerplants.

The automaker announced Thursday that its upcoming eighth-generation Golf will offer a low-cost alternative to purely gas- or diesel-powered motoring. The mild hybrid system appearing on that vehicle, due next year as a 2020 model, will soon spread throughout the VW lineup, the automaker claims. (Read More…)

Our man Healey sampled the latest Jetta not long ago, finding it to be a conservative box that has left most of the sporty spunk to its Golf cousin. VW’s MQB platform knows no bounds.

Of the five trims available, the base S has potential to sit at the Ace of Base table. After all, no matter how much ones spends on a 2019 Jetta, one will – right now, at least – find the same engine under its hood. The only trim on which a stick shift appears? The base S. Achtung!

Let’s find out what else is on board.

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The investigative parade continues in Germany. Prosecutors investigating Volkswagen Group’s diesel-emissions scandal have now turned their attention to Porsche. Roughly 10 facilities owned by the automaker in Bavaria and Baden-Wuerttemberg were searched by around 160 investigators.

Stuttgart-based prosecutors claimed to be interested in three specific individuals suspected of fraud and fraudulent advertising as it relates to the manipulated emissions-control systems of diesel passenger cars. The office clarified that Porsche CEO Oliver Blume was not among them, however.  (Read More…)

Volkswagen’s ongoing penance for its diesel-emission scandal includes a serious investment in to the United States’ EV charging infrastructure. But critics of the plan have previously suggested it might be a way for VW to capitalize on its corporate wrongdoing. The state of California wanted the German company to focus on disadvantaged communities while automakers worried VW might gain an early advantage in a competitive new market, especially if it could handpick the sites or partner with businesses.

It has been almost 10 months since those concerns were voiced and now Electrify America (a subsidiary of Volkswagen Group) has announced it will be partnering with Walmart to install electric charging stations at 100 stores in 34 states across America. That way you can help save the environment while you’re stocking up on plastic cups and single-serve coffee pods that will end up being dumped into the ocean.  (Read More…)

Volkswagen brand chief Herbert Diess, 59, now pulls all the levers at Volkswagen Group. On Thursday, the automaker’s supervisory board appointed Diess as CEO and said goodbye to Matthias Müller, who stepped down from the top position “by mutual agreement,” effective immediately.

The shakeup at the top comes as Volkswagen Group changes the way it manages the multiple brands under its corporate umbrella. There’s now a plan for six new business areas (plus the formation of a China region), with VW Group brands organized into three tiers — volume, premium, and super premium. All of this, in VW’s view, should lead to a streamlined decision-making process and a nimbler company. (Read More…)

Volkswagen Group is thinking about replacing chief executive Matthias Müller with the head of its VW brand, Herbert Diess. According to inside sources, however, the decision already appears to have been made. When questioned about staffing changes, the company said it was “considering evolving the leadership structure” as it relates to the the management board — which could extend to a change in CEOs.

An automaker typically wouldn’t even hint at such a thing if it wasn’t already a done deal. That means Müller is almost guaranteed to be moving on soon, bringing his extended history with the company to a close. A true company man, Matthias completed a tooling apprenticeship at Audi in 1977, before a reprieve where he left to study computer engineering. Returning to the brand in 1984, Müller moved up the ranks swiftly — eventually becoming CEO of Porsche in 2010 and replacing Martin Winterkorn as Volkswagen AG’s CEO during 2015’s diesel emissions scandal.

While his contract is good until 2020, the company could still press for an early retirement. In fact, some reports even have Müller removed from his post already. (Read More…)

In the last edition of Buy/Drive/Burn, we concerned ourselves with unpopular large luxury sedans. The general B&B consensus at the end of the day was that none of them were a great purchase idea (see, you’re getting the point now). In the comments, Brian E. suggested we cover a trio of compact-ish sporty sedans he evaluated in real life, back in 2006.

So let’s travel to those days before the Great Recession and pick apart some sporty import sedans. By they way, they all have automatic transmissions.

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Regardless of where we think Volkswagen’s true strengths prevail, the company is dead set on electrification. Granted, much of this is the direct result of the diesel emissions fiasco. But it doesn’t appear to be solely interested in providing lip service to an angry public; it wants to build these cars and it really wants you to be excited about that.

The brand’s current lineup doesn’t include much in the way of electrics, e-Golf notwithstanding, but CEO Matthias Mueller has promised to unveil a new EV “virtually every month” as its multi-billion-dollar investments into new battery technologies and charging infrastructure begins to bear fruit. In the meantime, we’ve grown accustomed to seeing VW parade a steady stream of electric concept vehicles. Normally, these are part of Audi’s e-tron lineup or the VW’s new I.D. sub-brand. However, the electric push has started spilling over into the core brand, and the latest product is more than just a battery-driven green machine. It feels tangible, like it might be meant for everyone — not just EV enthusiasts.

Volkswagen’s Atlas is a relatively spacious three-row, midsize crossover — fairly fuel efficient for its size, but not a hoot to drive. VW wants to remedy this by hybridizing the MQB platform, chopping a row of seats, and adding a helping of power that won’t jack up your weekly fuel bill. More importantly, this two-row model seems to bridge the gap between practicality and fun.  (Read More…)

After our last few Rare Rides were utterly luxurious and brougham in nature, it’s time to get back to the basics of motoring. A practical box where the windows are manually operated (quaint!) and number of buttons on the dash can be counted on two hands.

It’s a Volkswagen Quantum wagon from 1986.

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Don’t cut yourself cleaning up that juice glass you just dropped.

Yes, it’s true, the company that enjoys carving out slightly sportier iterations of existing models that aren’t actually any faster than stock is at it again. Volkswagen, which brought you screamers like the R-Line Jetta, Tiguan, and Atlas, plans to work the same magic on the brand’s upcoming flagship.

The 2019 Arteon, appearing later this year with a single powerplant and front- or all-wheel-drive, will take on the role of “brand shaper,” says VW’s North American region CEO Hinrich Woebcken, but that doesn’t mean it’s immune from the automaker’s across-the-board product strategy. So, what does R-Line bring to the swoopy CC’s replacement? (Read More…)

While companies are often found guilty of sketchy and illicit behavior, it’s becoming increasingly difficult not to feel some measure of sympathy for German automakers. The same goes for the government officials whose job it is to repeatedly raid the homes and offices of people employed by those manufacturers. Once gain, German prosecutors have searched both Volkswagen and BMW over diesel-related shenanigans.

Volkswagen saw 13 of its offices raided in Wolfsburg throughout the month of March. Braunschweig-based authorities seized physical and digital files in the hopes of catching the automaker in a lie from 2015. At the time, VW claimed an in-house investigation found it had understated fuel consumption and carbon dioxide emissions on no more than 36,000 vehicles. Considering the diesel emissions scandal affected far more vehicle than this, as well as the company’s much higher earlier estimate, prosecutors hope to catch the company out.

Meanwhile, BMW saw its facilities searched over suspicions that it employed a defeat device to circumvent diesel emission testing. The automaker said authorities were looking into “erroneously allocated” software on the BMW 750d and BMW M550d.  (Read More…)

We were a little disappointed that Volkswagen decided to keep the T-Roc in Europe — not because we were clamoring for another subcompact crossover but because this one actually seemed sort of interesting. Its two-tone paint scheme and hinted specs seemed ready to take on the likes of the Jeep Renegade, Nissan Juke, and Fiat 500X. But VW said it wasn’t well-suited for the American market.

Although, there was no way the company could possibly leave the fast-growing segment alone and we assumed it would eventually come up with something else for the United States and Canada — which is exactly what happened. During a press conference in Wolfsburg, Germany, VW said it would export a new small crossover from Mexico into the U.S. but that the first run of the model will take place in China.

Referred to internally as the “Volks-SUV,” the vehicle should be a bit smaller than the recently upsized Tiguan but larger and less car-like than the European T-Roc.  (Read More…)