The fallout from Dieselgate continues to harm VW’s reputation and market value, thereby negatively impacting investor interests. After one year and half of investigation, VW stands accused by OLAF of fraudulently securing € 400 million in loans from the EIB to develop the engine (equipped with the cheating software) at the heart of the Dieselgate scandal. In 2009, the European Investment Bank granted a loan to VW which was supposed to help the carmaker to develop an engine that would comply with emission rules in the EU.
Even though the money was not used to develop the cheating device itself, OLAF argues that VW knew that the money would be used for the development of an engine that would only meet its emissions targets by using a defeat device. OLAF concludes that VW secured the loan by “fraud” and “deception”. The loan would not have been granted if the EIB was informed about this.
OLAF does not have the competence to take judicial action but has sent recommendations to German authorities who are leading criminal investigations.
This new development represents a new blow to VW’s reputation and market value, directly impacting investors’ interests.
Fortunately, it seems investors can see “the light behind this black cloud”. After the Joint enforcement procedure launched in March 2017 by the European Commission, it seems that countries are now starting to open proceedings against the German carmaker.
The Austrian public prosecutor has started criminal investigations against Volkswagen, Robert Bosch and Dr. Martin Winterkorn. Breiteneder, an Austrian Law Firm has filed a complaint against VW and Bosch for providing the cheating software.
Through this criminal proceeding, Stichting Volkswagen Car Claim (Investors Foundation) will be able to lodge a complaint against VW, including accusations of fraud, environmental crimes and tax evasion. Since the accusations had consequences for VW’ reputation and market value, they averslyaversely affected investors’ interests. These latter could potentially join the criminal action as victims.
The Autrian Consumer Association (VKI) published a press release on their website ( in German)
Read Politico full article here