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Thu
Feb 28 2008

Scandal at VW

Steve Sutcliffe

The more you learn about the VW scandal (which involves everything from bribes and prostitutes to bogus bonuses and Brazilian mistresses) the more amazing it sounds. Yet the whole thing supposedly came grinding to a halt last week when Klaus Volkert, previously head of the VW works council, was sentenced to two years and nine months in jail on charges of “incitement to fraud.”

In reality it was shown that Herr Volkert had obtained two million euros of bonuses to finance his Brazilian mistress, thanks to a secret slush fund run by VW. But the real question is; how high up within the company did knowledge of the slush fund actually go. Who knew about it and who didn’t?

On January 9 this year even Ferdinand Piech himself was questioned under oath and denied categorically that he knew anything about the fund. Yet it’s equally obvious that if Piech himself knew nothing about the fund, there were people around him who did.

Herr Volkert may be the only candidate who’s being sent to jail over the scandal, but there are at least four other once high-up VW employees that were involved.

In June 2005 VW began legal action against Helmuth Schuster (then head of personnel at Skoda) alleging that he had taken bribes.

In July the same year VW’s head of human resources, Peter Hartz, resigned after the discovery of various brothel bills. He was given a suspended sentence for breach of trust in 2007, having co-operated with the prosecution. And in June 2007 Hans-Jurgen Uhl was fined for perjury, having sworn under oath that he hadn’t been to a brothel that was sponsored by the VW slush fund, while the manager of the fund itself – Klaus Joachim Gebauer – was suspended for one year on the same day that Volkert got two years and nine months.

Despite the fact that both Volkert and Gebauer have said they will appeal their sentences, something tells me that the real damage has already been done. Like I say, the more you learn about this particularly grubby scandal, the more incredible it becomes.

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About Steve Sutcliffe

Autocar's finest driver and most experienced road tester. Raced TVRs for three years; even once drove a Jaguar F1 car. Says he "likes cars, and likes other people who like cars".

Comments

loather February 28, 2008 11:25 AM

"...the real damage has already been done." Steve Sutcliffe

What real damage? Can you expand on this? I would have thought the number of Britons that know about this story was minimal and the number that care enough to inflict 'real' damage by way of forgone purchases of VW Group products is infinitesimally small.

After all, we're talking about several millions of euros sloshed around in a private, albeit linked to the state government, productive enterprise, that still employs several hundred thousand people in Germany alone.

Now compare that to bunging £25 billions to a poxy wide-boy outfit claiming to be a reputable bank, followed up by public money guarantees to the tune of another £85 billion, and the discovery that minimum 40% of the supposed assets now owned for the nation actually belong to an off-shore tax avoidance entity that claims to have been set up for the exclusive benefit of a Downs Syndrome charity and you're really talking scandals and 'real' problems.

Oh, but I'm forgetting, these are Gentlemen, from The City, where one's word is one's bond, and not lowlife greasemonkeys nailing bangers together and copping off with prossies in some unmentionable part of Germany.

Oh, and did I forget to mention that Adam Applegarth and other directors of Northern Pox sold out their share options just before the price collapse from £12 to £1 last year? Are these individuals like the VW directors going to prosecuted?: investigated by the FSA or have their collars felt by SOCA - Serious Organised Crime Agency? This is Britain, land of the bankers and the hallowed City of London and sweet fa gainful, productive industry - don't hold your breath!

PS Why does a third-rate jumped up building society warrant world-record taxpayer bailout but not Rover(2005) say or any other example over the last 30 or so years? Can you explain that perchance.

loather February 29, 2008 5:29 PM

Oh dear Steve, you were right! VW are in deep doo-doo.

"VW announces today profits for 2007 up 50% to €6.5 billion, through record sales of 6 million vehicles..." source: Reuters etc.

Boy are they in big trouble! Don't give up the day job - stick to pedalling cars, rather than critiquing the running of the companies that make 'em.

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