• US stock market daily report (September 25, 2015, Friday)

    Key aspects of emissions tests whose results were faked were controlled by Volkswagen AG (VW) executives in Germany.

    Lab results showed emission levels of carbon dioxide or nitrogen oxides which differed by 10% or 20% from road results, tests never showed emissions 35 or 40 times greater than might have been expected, suggesting that any software tweak might have been installed before reaching the Californian testing sites.

    The chain of command and those involved in the deception stretched to Volkswagen headquarters where missed emissions targets were overseen by managers at Volkswagen’s base in Wolfsburg, Germany. The executive committee of the supervisory board has backed former Volkswagen Chief Executive Martin Winterkorn’s statement that he knew nothing about the malfeasance.

    On September 18, the U.S. Environmental Protection Agency (EPA) said VW admitted to cheating its way through U.S. air pollution tests. Volkswagen could face fines of as much as $18 billion for reporting false results on the VW Jetta, Golf, Beetle and Passat, as well as the Audi A3.

    At Volkswagen’s location in Westlake Village, California, according to criteria sent from Germany and translated into English, emissions testers evaluated all the cars found with the software that enabled VW to cheat on the emissions tests. All results were sent back to Germany before being being passed onto the EPA.

    A team of engineers from Volkswagen headquarters or luxury brand Audi’s base in Ingolstadt was flown in, if any vehicle failed to meet emissions targets. After tinkering with the vehicle that failed the test for about a week, the car would then pass the test. According to reports, Volkswagen had no engineers in the U.S. able to create the mechanism that cheated on the emissions test or who could fix emissions problems.

    Among those who will leave VW in the wake of Winterkorn’s resignation, Audi development chief Ulrich Hackenberg and Porsche development head Wolfgang Hatz. Winterkorn's confidante Hackenberg, was responsible for VW brand development from 2007 to 2013. Hatz ran the VW motor development from 2007 to 2011.

    In the United States there are already 27 states planning to subpoena Volkswagen in a joint investigation who will pursue the investigation under consumer-protection and environmental laws.

    Contributed by Millennium Traders
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