German police have taken Porsche manager Jörg Kerner into custody, amid concerns that he could flee the country. The emissions scandal has spread from Volkswagen's core VW division to many other brands.
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Jörg Kerner, head of Porsche's engine division, was arrested and was being held on remand amid concerns he may be a flight risk, German media reported on Friday.
Porsche chief Oliver Blume confirmed the detention of one of the luxury carmaker's staff in a letter to employees, seen by several news agencies. But Blume didn't name the staff member, who was arrested on Thursday.
The detention follows a series of raids at the company this week in connection with the alleged manipulation of emissions controls on diesel cars, which Porsche denies.
"We reject these allegations and will do our utmost to clear up the matter," Blume told staff in the memo.
Kerner is one of three Porsche employees being investigated on suspicion of fraud and criminal advertising. He was working at fellow German carmaker Audi when the diesel scandal broke in 2015. The other two suspects are a current member of the Porsche board of directors and a former employee.
Reports suggest Kerner was on his way to work on Thursday when he was informed that his home was being raided by police, German newspaper Bild reported. When he decided to return home, his sudden change in destination made investigators think he was attempting to flee, the newspaper added.
VW's emissions scandal plunged the automaker into its deepest crisis ever. It brought with it everlasting damage to VW's reputation and massive fees and penalties — not to mention compensation claims from car owners.
Image: picture-alliance/dpa/J. Stratenschulte
The disaster unfolds — September 2015
About two weeks after Volkswagen admitted behind closed doors to US environmental regulators that it had installed cheating software in some 11 million of its diesel vehicles worldwide, the Environmental Protection Agency shared that information with the public. It was September 18, 2015. The ensuing crisis would eventually take a few unexpected turns.
Image: picture-alliance/dpa/O. Spata
The boss must go, long live the boss — September 2015
Volkswagen's then-CEO Martin Winterkorn (above) had little choice but to step down several days after news of the scandal broke. In September 2015, he tendered his resignation, but retained his other posts within the Volkswagen Group. Winterkorn's successor was Matthias Müller. Until taking the reins at VW, Müller had been the chairman at Porsche, a VW subsidiary.
Image: picture-alliance/Sven Simon
Raiding headquarters — October 2015
Regulators in the US weren't the only ones investigating VW. Authorities in Lower Saxony, the German state in which VW is based, were also scrutinizing the company. On October 8 2015, state prosecutors raided VW's headquarters along with several other corporate locations.
Image: picture-alliance/dpa/P. Steffen
Hell breaks loose — January 2016
On January 4, 2016, the US government filed a lawsuit against VW in Detroit, accusing the German automaker of fraud and violations of American climate protection regulations. The lawsuit sought up to $46 billion for violations of the Clean Air Act.
Image: picture-alliance/dpa/A. Burgi
Quit or forced out? — March 2016
In March 2016, the head of VW in the US, Michael Horn, resigned. In the initial days and weeks after the scandal broke, he was the one US authorities turned to for information. He issued an official apology on behalf of the automaker, asking for the public's forgiveness.
Image: Getty Images/C. Somodevilla
Settlement — October 2016
On October 25 2016, a US judge approved a final settlement that would have VW pay $15.3 billion. In addition, affected cars would be retrofitted with better, non-deceptive hardware and software, or else VW would buy them back completely from customers.
Image: picture-alliance/dpa/P. Pleul
Imitators — July 2017
When dieselgate first emerged in 2015, analysts said it was likely other car makers were also cheating tests. But it wasn't until 2017 that other companies were targeted in probes. In July, German authorities launched investigations into luxury car makers Porsche and Daimler for allegedly cheating emissions tests. Others, such as Audi and Chrysler, have also been hit by similar allegations.
Image: picture-alliance/dpa/F. Kraufmann
Public still supportive — December 2017
Despite dieselgate, VW has managed to keep the emissions scandal from utterly tarnishing its image. According to several polls, between 55 to 67 percent of Germans continue to trust the automaker. In the US, polls show that roughly 50 percent still believe the German company produces worthwhile vehicles.
Image: picture-alliance/dpa/C. Klose
Fuming over monkeys — January 2018
In late January, however, VW suffered another heavy blow over reports that the company experimented on monkeys and made the animals inhale diesel fumes. To make matters worse, a separate experiment that had humans inhale relatively harmless nitrogen dioxide was revealed at the same time. Some media wrongly interpreted this to mean humans were also inhaling toxic fumes.
Image: picture-alliance/dpa/F. Gentsch
Canadian court demands millions — January 2020
Years after the scandal that caused Volkswagen to pay CAN$2.4 billion (US$1.83 billion), a court in Toronto order a further fine of CAN$196.5 million. Volkswagen pleaded guilty of violating in environmental laws. Prosecutor Tom Lemon noted that the fine was "26 times the highest fine ever for a Canadian environmental offence."
Image: picture-alliance/dpa/R. Knipping
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Both high-end carmakers are owned by Volkswagen, which admitted in 2015 to using cheating software designed to dupe pollution tests in some 11 million cars worldwide, mainly in its own-brand VW cars but also in those made by Audi, Porsche, Skoda and Seat.
Last week, the Volkswagen group replaced its CEO — former Porsche boss Matthias Müller — in a new bid to turn the page on the "Dieselgate" scandal. He was succeeded by VW brand chief Herbert Diess.
Müller took the helm of the VW group in the turbulent days after the scandal broke. But he too became implicated while the firm dealt with a host of legal challenges at home and abroad that have already cost the auto giant over 25 billion euros ($31 billion) in fines, buybacks and compensation.
Stuttgart prosecutors said last year they were investigating Müller over market manipulation, suspecting he failed to share information about the diesel scandal quickly enough with shareholders.