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Volkswagen Group


Volkswagen Group is the German automobile concern. The headquarters of the company is in the city of Wolfsburg, Germany.


+ Volkswagen Group


$18 billion penalties and compensations are paid in the USA because of the crimeware

By the end of July, 2020 in the USA the company paid because of "dizelgate" in total $18 billion penalties and compensations.

The American owners of the Volkswagen cars received over $9.8 billion as compensations on the case of manipulations with data on the content of harmful substances in exhaust gases of diesel cars of the German company, Federal trade commission (FTC) of the USA reported.

According to it, more than 86% of car owners preferred that VW redeemed their machines, or ahead of schedule terminated the lease agreement, without waiting for correction of defects.

Volkswagen increases a share in Audi to 100%

In the middle of June, 2020 it became known that Volkswagen will pay $267 million to redeem bonus division of Audi from minority shareholders. Volkswagen already owns 99.64% of stocks of Audi and now will increase the share to 100%. Read more here.

To investment of $2.6 billion into the developer of pilotless cars Argo AI

At the end of May, 2020 Volkswagen closed the transaction on investment of $2.6 billion into the developer of Argo AI unmanned vehicles. Read more here.

Investment of 2 billion euros into the Chinese producers of electric vehicles

At the end of May, 2020 announced Volkswagen investment into two Chinese producers of electric vehicles and component parts for them at once. The general size of investments exceeds 2 billion euros. Read more here.

The court of Germany obliged to pay Volkswagen to car owners the total cost of machines for use of the crimeware

At the end of May, 2020 the German court obliged to compensate Volkswagen to car owners the total cost of machines which were equipped with the crimeware, but the total sum of compensation will depend on vehicle mileage.

The decision of Federal court in Karlsruhe created an important precedent for hundreds of thousands of owners of diesel cars with software distorting indicators of harmful emissions. This resolution will be considered by consideration about 60,000 claims in lower courts in Germany.

The German court obliged Volkswagen corporation to pay compensations for distortion of data on harmful emissions

The first claim was submitted by 65-year-old Herbert Gilbert from Rheinland-Pfalts who demanded a full recovery for the Sharan minivan purchased in 2014. The claimant claimed that he believed advertizing and was convinced that he buys the car which is only slightly polluting the environment. According to the solution of land tribunal, the Volkswagen concern should pay to the client 25,600 euros plus interests ($27,930). This payment almost for 6,000 euros ($6,542) below the original price of purchase as judges took depreciation of the car into account.

The chief judge Stephan Seiters considered that Volkswagen "for many years systematically brought to the market vehicles which crimeware was configured in such a way that they satisfied a trbovaniya on restrictions (emissions) only in test conditions". The judge decided that the fact of sale of the modified car to the claimant did him harm though insisted Volkswagen that even vehicles with the crimeware "are suitable for use" for the intended purpose.

Even before sign judicial proceedings, at the end of April, 2020 the Volkswagen company organized extrajudicial settlement of the mass claim from hundreds of thousands of claimants. It was decided to pay 235,000 drivers not less than 750 million euros ($818 million).[1]

200 thousand drivers in Germany will receive from Volkswagen 620 million euros for frauds of the company with software

The federal union on consumer protection (VZBV) reported on April 20, 2020 that Volkswagen agreed to pay 620 million euros compensation of 200 thousand owners of cars, residents of Germany, victims of diesel scandal. In dependence of model and age of the purchased car buyers will receive from 1350 to 6250 euros.

To receive payment, owners of cars will have to sign the tying agreement with Volkswagen under which they refuse further claims within pre-judicial settlement of the class action. The company is going to begin to pay means since May 5, 2020.

Volkswagen agreed to pay 620 million euros compensation of 200 thousand owners of cars, residents of Germany, victims of diesel scandal

At the end of February, 2020 announced Volkswagen reaching an agreement with VZBV on compensations of 260 thousand to buyers of cars with diesel engines for the total amount of 830 million euros. 250 thousand people submitted applications for compensation payment, but to the middle of April, 2020 only on 130 thousand to statements was the positive decision is made. The producer will consider applications of 21 thousand more car owners in the nearest future.

Originally statements were going to be adopted till April 20, 2020, but owing to a large number of persons interested, the term of order taking is decided to be prolonged.

A large number of the signed agreements says that we made the fair proposal to our clients — the head of department of legal issues and the board member of Volkswagen Hiltrud Verner (Hiltrud Werner) said.

However lawyers consider that the crucial role in achievement of arrangements was played by a coronavirus pandemic.

People suffer a shortage of cash, many were dismissed or sent on leaves. Therefore they are glad to any compensation which can be received — Christopher Rother who processed about 12 thousand complaints on "dizelgeyta" commented.[2]

Sending 80 thousand employees to a forced holiday

At the end of March, 2020 it became known that Volkswagen sends 80 thousand employees on forced leave because of a coronavirus which led to drop in sales of cars and failures with deliveries of component parts.

According to the Deutsche Wirtchafts Nachrichten edition with reference to the representative of Deutsche Wirtchafts Nachrichten, the company is forced to adjust the production program in the conditions of a coronavirus pandemic.

Volkswagen sends 80 thousand employees on forced leave because of a coronavirus which led to drop in sales of cars and failures with deliveries of component parts

In this regard at the plants of the enterprise in Lower Saxony, Hesse and Saxony till April 3, 2020 will enter the reduced changes. According to the same diagram the division on production of the MAN trucks and also Audi and Porsche will work.

Also said Volkswagen that in connection with the shortage of the components delivered from the European plants, the carmaker temporarily will suspend production at automobile plant in Kaluga and contract assembly in Nizhny Novgorod for two weeks — from March 30 to April 10, 2020.

At the same time in the company specified that the period of suspension of production will be qualified as idle time and will be paid according to the legislation of the Russian Federation.

In the conditions of a pandemic of a coronavirus of Volkswagen made the decision to stop work in the headquarters in Wolfsburg and also on productions in Emden, Hanover, Osnabryukke, Zwickau and Dresden. Besides, spare parts at factories in Braunschweig, Salzgitter, Kassel, Chemnitz and sitting ceased to be made for cars.

Production in Spain in Pamplona and also in Palmel in Portugal is frozen, the plant in Slovakia does not work. Same concerns divisions of concern in Argentina and Brazil. In Mexico it is going to take a break since March 30, 2020.

Audis and Volkswagen changed the logos, calling society for self-isolation because of a coronavirus pandemic.[3]

Payment of 830 million euros to hundreds of thousands of owners of machines in Germany because of software underestimating emissions

In the middle of February, 2020 Volkswagen said that it will pay compensation to the German owners of the diesel cars for software which underestimated indicators of harmful emissions. This action will cost the German auto maker 830 million euros

In 2015 regulating authorities fined Volkswagen which used the special software for engine management in the diesel cars to hide excessive levels of pollution. Scandal became the reason of a multiplicity of suits.

Volkswagen said that it will pay compensation to the German owners of the diesel cars for software

The offer arrived despite failure of negotiations with the German consumer association VZBV which agreed with Volkswagen about the conclusion of the settlement transaction.

The failure of negotiations on settlement of a problem with VZBV Consumer association should not affect clients", said in the statement of Volkswagen, having added that all clients registered in the program of compensation of VZBV will acquire the right to legal settlement. So far Volkswagen offers "earlier approved settlement" to clients who joined the class action in Germany and "satisfied settlement packet conditions, without addressing for support VZBV.

Volkswagen said that it interrupted negotiations with VZBV because of excessive costs for payment of the lawyers representing consumer organizations. According to the company, lawyers demanded €50 million for the services. According to VZBV, negotiations failed because the car maker did not guarantee the system of compensation of damage which would be adequate to customer needs. The VZBV consumer association added that it will continue to try to obtain settlement on the terms of VZBV through the German courts.

According to the class action, compensations required about 460,000 owners of the diesel Volkswagen cars which are perturbed with manipulation of the prices.[4]

Creation of the company for development of the automobile IT platform

At the end of January, 2020 the Aeris Communications company specializing in solutions for IoT integrated with Volkswagen Group of America to create joint venture for development of the IT platform for vehicles. The new company received the name of Ventic LLC. Read more here.

2019: Opening of the new company for development of pilotless cars of Volkswagen Autonomy

At the end of October, 2019 announced Volkswagen creation of new subsidiary company which will focus on projects in the field of unmanned vehicles. The structure under the name Volkswagen Autonomy was headed by the senior vice president of VW for pilotless driving Alexander Hittsinger who was earlier also working in Apple corporation. Read more here.


Investment of 3.5 billion euros into digital business

On August 23, 2018 the Volkswagen concern announced investment of 3.5 billion euros into development of digital business. A part of means will go for development of a cloud platform to which cars and drivers for providing different services, including car-sharing will be connected.

Also announced Volkswagen development of the operating system under the name of vw.OS which will find application in electric vehicles of the company, since 2020.

Volkswagen invests 3.5 billion euros in digital business and creation of automobile OS

It is noted that the cars using vw.OS will receive absolutely new architecture of electronics which will facilitate implementation of functions of pilotless driving.

Instead of involving about 70 different sensors and controllers working independently of each other in each car in new machines of concern different sensors will be connected by means of the corporate operating system.

Thus, as notes Reuters agency, information collected by parking sensors can be connected with steering, brakes and cards of navigation that the car could park as soon as the dash camera notices" an empty seat for the parking.

Besides, created in OS company will allow to update easier the automobile software as in this case the car maker does not depend on software of third-party vendors.

Since 2020 Volkswagen is going to release machines only with connection to the Internet. Every year 5 million cars will become a part of Internet of Things.

The corporation expects to earn by 2025 about 1 billion euros due to providing new digital services, such as car-sharing, goods delivery and search of parking spaces.

In the second quarter 2019 of Volkswagen is going to start carsharing service We Share which vehicle fleet will have 2 thousand electric vehicles.[5]

Complete transition to digital design of cars

In August, 2018 the German carmaker Volkswagen  announced complete transition to digital design of the vehicles. On it the company needed about two years.

Within digital transformation of Volkswagen began to use actively interactive constructions, big LED screens, technologies of virtual and augmented reality for three-dimensional modeling. For example, the staff of the company applies the special points allowing people who are in different corners of the planet at the same time to be connected to virtual space for work on creation of images of a product.

In August, 2018 the German carmaker Volkswagen announced complete transition to digital design of the vehicles

By August, 2018 all process of work of division of Volkswagen Design — from the beginning of project development and before receiving a new product — became completely digital. In Volkswagen say that it considerably increases efficiency of each stage and allows to interact with bigger productivity with different specialists.

Optimization of the software and advanced training of personnel positively affect performance of our employees. Also process of creation of new products accelerates and their quality increases — the chief designer of Volkswagen Claus Bishoff (Klaus Bischoff) says. — Developing design of new models, Volkswagen uses a full range of digital solutions.

For example, for the final approval of design of models of cars it is used 18metrovy the LED screen now. One of advantages of use of virtual modeling is considerable reduction of volumes of design of future models from designer plasticine that saves time and means. Since the middle of 2016 reduction of volumes of production of physical presentation models allowed to save the considerable amount of funds.[6]

The order of batteries for electric vehicles for 20 billion euros

Volkswagen ordered accumulators for electric vehicles for the amount of 20 billion euros. It was said by the CEO of the company  Matthias Mueller in March, 2018. According to him, the German auto giant signed agreements with suppliers of batteries and appropriate technologies from Europe and China where the company sells 80% of the cars. It is in the future going to involve the contractor from North America.

Main article Volkswagen Electric vehicles


Investments into $40 billion into electric vehicles, pilotless cars and digital services

In November, 2017 Volkswagen approved the budget in 34 billion euros (about $40 billion) for development of electric vehicles, pilotless machines and digital services. Thanks to these investments the German carmaker wants to become the world market leader of electric motor transport, transfers Reuters news agency.

Use of 3D-printers

In June, 2017 announced Volkswagen the beginning of use of three-dimensional printing in production of parts for cars. Meanwhile, implementation of 3D-printers at one of the largest plants of concern replaced almost all production devices.

In June, 2017 Volkswagen began to make automobile spare parts by 3D method - printings. The transitional coupling for the Volkswagen Corrado model which is, however, laid already off became the first such product. By means of this adapter placed between a control knob the window regulator and a governor gear it was succeeded to prevent damage of a leather upholstery of a door.

The employee of Volkswagen Autoeuropa uses the working equipment printed on the Ultimaker 3D-printer
Creation of this coupling became this problem. In particular, because of thin channels in a part which require a fine precision — the managing director of purchases of parts for the classical Volkswagen models Tobias Pape noted.

Also it became known of purchase of Ultimaker 3 and Ultimaker 2+ 3D-printers for the Volkswagen Autoeuropa enterprise in Portugal at which more than 100 thousand machines annually are produced. The printing equipment is used by the company for creation not of parts for cars, and special tools applied in assembly of motor transport.

It is noted that by June, 2017 by means of 3D-printers 93% of the working equipment which was bought from supporters of suppliers earlier are created. As a result the car maker reached economy about $150 thousand a year. About 4 thousand people work at the Portuguese factory.

In addition to the reached saving of time and money, we can create more difficult and ergonomic devices which finally will become much more useful in daily transactions as they are better adapted to our requirements — the manager Luis Pascoa who is responsible for pilot projects at the Volkswagen Autoeuropa plant noted.[7]

2015: Recognition in use of the crimeware for underestimated emissions of a car

In September, 2015 the German car maker recognized that he set the software which allowed to manipulate tests for compliance of engines to environmental standards in a car.

1967: The Vemag plant was a part of Volkswagen

The Vemag plant, earlier released the DKW cars, was included into the Volkswagen AG group in 1967.


Check on durability of a wooden body of DKW F8. On the going car there are not less than 28 people. Germany, 1939.

Later the plant making DKW was a part of VW.

1934: Hitler examines model of the first "Volkswagen Beetle"

The designer of cars and the armored equipment Ferdinand Porsche (extreme at the left) shows to Hitler model of the first Volkswagen Beetle car (Volkswagen Beetle). Germany, 1934.