Volkswagen subsidiary
The VW subsidiary IAV now gets a checker from the United States.
Dusseldorf because of the Volkswagen Group triggered Diesel affair gets the next German company a controller from the United States, As reported by group of companies, the Berlin development service provider IAV has already submitted a list of possible candidates for the position of the monitor. In close coordination with the US judiciary, the post must be filled by May at the latest.
IAV is a company with 7000 employees and about 800 million euros annual turnover, which takes on development orders from the automotive industry. The service provider and Volkswagen are closely related, the automaker is with 50 percent the most important shareholder of IAV. The VW Group is also the largest customer of the Berlin automotive supplier.
The close connection to Volkswagen is IAV in the diesel affair to the fatal become. About ten years ago, engineers from the development service provider had been involved in the software used to manipulate VW vehicles. In the course of the investigation against the Volkswagen Group, the US Justice had become aware of IAV.
Already in the confession of the VW Group from the beginning of 2017 (“Statement of Facts”) appeared the development company under the name “Company A”. IAV was suspected early to have been involved in the development of manipulated diesel engines.
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Earlier last year it became known that IAV is negotiating with the US Department of Justice similar to Volkswagen on a settlement that includes a debt confession. Shortly before Christmas, the time had come: the IAV lawyers had negotiated a so-called plea agreement with the Washington authorities.
Diesel scandal: How the control failed at VW
In the agreement with the US judiciary IAV was assigned a minor debt in connection with the diesel fraud. At the same time, the VW partner committed to pay a fine of $ 35 million. IAV also assures that the company will be recording a monitor for two years. Its control should contribute to the fact that there will be no similar violations as in the diesel scandal.
IAV did not want to comment on the current state of discussions with the US judiciary. “No comment,” said an IAV spokesman. In business circles, however, it is considered certain that the service provider will fill the monitor post until spring. The admission of guilt forces IAV to comply with US requirements.
At first only two years
A monitor was also used at Volkswagen. The well-known lawyer and former Deputy US Attorney General Larry Thompson has been controlling the automaker since the summer of 2017. Volkswagen must undergo this control for three years. If Thompson does not see any significant improvements in Wolfsburg, he could even stay a fourth year.
Diesel scandal: VW lawyer Werner: “The customers have suffered neither loss nor damage”
The term of office at IAV, however, is initially limited to two years. The difference stems from the marginal debt related to the diesel affair. The US judiciary is therefore satisfied with the shorter monitor runtime. The close ties between Volkswagen and IAV exist not only in the daily business, but also on a personal level. The Wolfsburg-based company traditionally represents the chairman of the supervisory board.
Until the end of the year that was still Ulrich Eichhorn, at this time development chief at VW. On January 1, Eichhorn then moved to IAV in Berlin as Chairman of the Board of Management. Because of the link with VW, the auto parts supplier must expect no legal consequences of the automaker in connection with the diesel affair.
At the weekend it had become known that Volkswagen may demand compensation from the Stuttgart supplier Bosch. Like IAV, Bosch was involved in the creation of the software for the manipulated diesel vehicles. “At IAV, such a thing would make little sense,” a corporate commentator said, “that would be something from the left to the right pocket.”