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Former VW boss investigated for fraud

Monday, September 28, 2015 - 01:41

The new CEO of Volkswagen starts work facing the daunting task of dealing with the fallout from the emissions scandal. As Tim Graham reports the clean-up has reportedly already begun with several top managers suspended.

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A new trading week, but still no reprieve for the beleaguered carmaker Volkswagen. Its stocks still in the doldrums on Monday, having fallen about 35 percent in the past week. Quite a day for the new chief executive, Matthias Mueller, to take the reins. But is he the right man to steer the company through the crisis? IG's Chris Beauchamp thinks so. (SOUNDBITE) (English) CHRIS BEAUCHAMP, IG ANALYST, SAYING: "It's probably better they've got someone from inside the firm than bringing in someone new. The risk with bringing in someone new is that they might get rid of a lot of good elements with the bad and you risk damaging the performance of the company from the get go." Volkswagen's emissions cheating scandal is continuing to spiral. Sources say three R&D chiefs at the company's core brands have been suspended, and German prosecutors are now investigating the former chief executive, Martin Winterkorn, for fraud. His replacement has been lifted from the old guard at Volkswagen. A bad move, according to Reuters Breakingviews columnist, Olaf Storbeck. (SOUNDBITE) (English) OLAF STORBECK, REUTERS BREAKINGVIEWS COLUMNIST, SAYING: "The risk that former VW managers either knew about it, didn't ask the right questions, is just massive. Better to choose a corporate outsider as next CEO." Away from the top table, Volkswagen's troubles are threatening to spread to its rivals... One campaign group is pointing the finger at BMW, Mercedes and Porsche. It's released data suggesting some new cars use 50 percent more fuel on the road than in the laboratory. Although the industry denies evidence of a widespread problem, it's clearly a sensitive time for car makers.

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Former VW boss investigated for fraud

Monday, September 28, 2015 - 01:41