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VW's former CEO probed over market manipulation

Monday, June 20, 2016 - 01:16

German prosecutors have launched a probe against former Volkswagen Chief Executive Martin Winterkorn and another senior executive who are suspected of possible market manipulation related to the carmaker's emissions scandal. Sonia Legg reports

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A new strategy last week and the annual meeting this week - Volkswagen isn't in hiding. But the emissions scandal isn't going away either. German prosecutors have launched a new probe against former VW Chief Executive Martin Winterkorn. He and another senior executive are suspected of possible market manipulation in relation to the scandal. Now prosecuters are examining whether the German auto maker disclosed its financial impact too late. It all adds to VW's growing legal headaches and gives investors attending this week's agm more ammunition. (SOUNDBITE) (English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "When trust has been broken between the company and/or the customer then I think you do need to have a period of trying to rebuild that trust. I think in the context of most customer though they still regard the product as exceptionally good quality but the question is, there is still that reputational risk which will only fade with time." In its annual report in April VW acknowledged it had not grasped the potential impact of the scandal until last summer. In response to the new probe it said it doesn't provide any fresh facts to indicate a possible severe neglect of duty by the accused managers.

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VW's former CEO probed over market manipulation

Monday, June 20, 2016 - 01:16