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VW infighting as Nissan dealt blow in Seoul

Thursday, February 09, 2017 - 01:36

A media report is causing more infighting among former and current VW leadership over the emissions scandal, as a court in South Korea backs up government accusations it too cheated emissions tests. Laura Frykberg reports.

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Who knew what about Dieselgate, and when. According to a new newspaper report: management, a lot - and before it became public. It alleges that former Volkswagen chairman Ferdinand Piech raised it with then-Chief Executive Martin Winterkorn and the supervisory board in March 2015. Shortly prior to Piech being ousted. A current board member - who's also the Prime Minister of Lower Saxony - has disputed that, with a well-worn phrase. (SOUNDBITE) (German) LOWER SAXONY PRIME MINISTER, STEPHAN WEIL, SAYING: "This can only be regarded as 'fake news'. I've known about the accusations for several months. They are without foundation and not provable." Dieselgate has cost VW billions of dollars. Many say in-fighting risks undermining efforts to move past the now almost two-year-old scandal. It sparked an investigation into rival automaker Nissan, in South Korea. The government accused the Japanese carmaker of using an emissions cheating device . A court in Seoul has now agreed with them. (SOUNDBITE) (English) PANMURE GORDON CHIEF ECONOMIST, SIMON FRENCH, SAYING: "If there is a problem, get the news out quickly, put it all out in the market then deal with the fallout. The most damaging thing for shareholder confidence is the idea this will be dripped out into the market, so a real challenge on the plate there for Nissan's leadership." And there's another red light for the Japanese company. It's posted a weaked-than-expected operating profit in the third quarter. Due to higher costs and a stronger yen stalling earnings.

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VW infighting as Nissan dealt blow in Seoul

Thursday, February 09, 2017 - 01:36