SEC charges VW over ‘Dieselgate’

The Securities and Exchange Commission (SEC) has charged Volkswagen, two of its subsidiaries, and its former CEO, Martin Winterkorn, for allegedly defrauding U.S. investors during the so-called Dieselgate scandal. Investigators claim the company raised billions of dollars through the corporate bond and fixed income markets while making a series of deceptive claims about the environmental impact of the company's ‘clean diesel’ fleet. According to the US regulator’s complaint, from April 2014 to May 2015, Volkswagen issued more than $13 billion in bonds and asset-backed securities in the US markets at a time when senior executives knew that more than 500,000 vehicles in the US grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm.

SEC charges VW over ‘Dieselgate’

Mar 22, 2019

The Securities and Exchange Commission (SEC) has charged Volkswagen, two of its subsidiaries, and its former CEO, Martin Winterkorn, for allegedly defrauding U.S. investors during the so-called Dieselgate scandal. Investigators claim the company raised billions of dollars through the corporate bond and fixed income markets while making a series of deceptive claims about the environmental impact of the company's ‘clean diesel’ fleet. According to the US regulator’s complaint, from April 2014 to May 2015, Volkswagen issued more than $13 billion in bonds and asset-backed securities in the US markets at a time when senior executives knew that more than 500,000 vehicles in the US grossly exceeded legal vehicle emissions limits, exposing the company to massive financial and reputational harm.

Moovit adds parking to transit app

Transit data app specialist Moovit is to partner with SpotHero, the leading marketplace and mobility platform for off-street parking in North America, so users can benefit from its network of parking facilities. According to a survey of Moovit users in the suburbs of San Francisco, Los Angeles, New York and Washington, DC, 58% of commuters who drive as part of their daily commute said they spend more than five minutes looking for parking, and 73% say parking at transit stations is “frustrating.”

Moovit adds parking to transit app

Mar 22, 2019

Transit data app specialist Moovit is to partner with SpotHero, the leading marketplace and mobility platform for off-street parking in North America, so users can benefit from its network of parking facilities. According to a survey of Moovit users in the suburbs of San Francisco, Los Angeles, New York and Washington, DC, 58% of commuters who drive as part of their daily commute said they spend more than five minutes looking for parking, and 73% say parking at transit stations is “frustrating.”

CFPB tackles captives over deficiency balances

The Consumer Financial Protection Bureau (CFPB) has raised issues with a number of captive auto finance companies for incorrectly calculating deficiency balances, and is warning it may be forced to take further action. Examiners reviewed the loan servicing operations of several captive auto finance companies. Borrowers financing a car sometimes purchase ancillary products such as an extended warranty and finance the products through the same loan. If the borrower later experiences a total loss or repossession, the servicer or borrower may cancel the ancillary products to obtain rebates of the unused portion of the premiums amounts for the of the products.

CFPB tackles captives over deficiency balances

Mar 22, 2019

The Consumer Financial Protection Bureau (CFPB) has raised issues with a number of captive auto finance companies for incorrectly calculating deficiency balances, and is warning it may be forced to take further action. Examiners reviewed the loan servicing operations of several captive auto finance companies. Borrowers financing a car sometimes purchase ancillary products such as an extended warranty and finance the products through the same loan. If the borrower later experiences a total loss or repossession, the servicer or borrower may cancel the ancillary products to obtain rebates of the unused portion of the premiums amounts for the of the products.

EMEA

Volkswagen Financial Services plans to standardise IT systems as part of cost reduction programme

Mar 22, 2019

Volkswagen Financial Services is launching an efficiency drive that is expected to generate annual savings of €850 million, including the use of standardised IT systems. The plan was revealed by Lars Henner Santelmann (pictured), chairman of the management board of Volkswagen Financial Services, as the company revealed record results for 2018, with total contracts rising 5.5% to 20.3 million during the year. He said: “Our intention is to reach a portfolio of 30 million contracts by 2025 and also save €850 million each year from then onwards. This will be achieved by enhancing our productivity, by introducing standard IT systems and by optimising our sales costs.”

Americas

Ford to close Sao Paulo factory

Mar 19, 2019

Ford has announced the closure of its Sao Bernardo do Campo factory in Brazil as part of its global restructure. Located close to Sao Paulo, the factory currently assembles Cargo and F Series trucks as well as the Fiesta passenger car. It has been operational since 1967 and its focus shifted largely to commercial vehicles in 2001.

Asia Pacific

Hyundai and Kia invest $300m in India’s largest mobility service provider Ola

Mar 19, 2019

Hyundai Motor Group has announced a $300 million investment into Uber-rival Ola, as the car manufacturer expands into providing mobility solutions and related fleet services. The agreement will see Hyundai, Kia and Ola collaborate on developing fleet and mobility solutions by building India-specific electric vehicles and support services, as well as helping Ola attract new drivers to the platform. As part of the strategic collaboration, the companies will jointly develop services to operate and manage the Ola fleet, as Hyundai Motor Group expands its operations from automobile manufacturing and sales to mobility services and total fleet solutions.