Dieselgate will never end

The director of Volkswagen charged by German prosecutors, Carlos Ghosn is still one thing, and Uber gets a brief stay in London. All this and more in The Morning Shift of Tuesday, September 24, 2019.

1st gear: Dieselgate? Diesel scandal! (This time it's the manipulation of the stock market)

Volkswagen's CEO, Herbert Diess, came from BMW shortly before the start of the Dieselgate scandal in 2015. German prosecutors have now accused him of manipulating the stock market for failing to warn shareholders that Dieselgate would arrive.

According to the New York Times:

Hans Dieter Pötsch, Chairman of the Volkswagen Supervisory Board; Herbert Diess, the director general; and Martin Winterkorn, a former chief executive, are accused of failing to inform shareholders of the results of an investigation in the United States that allegedly resulted in accusations of emissions fraud.

Volkswagen shareholders were informed of this fraud only when the Environmental Protection Agency issued a finding of violation in September 2015. The share price of Volkswagen has fallen by almost half and the cost of the scandal has exceeded $ 30 billion in settlements and fines.

The three accused men have issued statements in which they deny having been accused of violating German law which is incumbent upon them to warn shareholders of events likely to affect the course. actions.

Unfortunately, Diess's lawyers say that he will continue to run the company. More clumsily, the New York Times calls Diess "Mister" and his lawyers call him a "doctor."

"Neither the facts nor the law justify the charges," said Diess's lawyer in a statement. "Newly arrived in July 2015, Mr. Diess was not able to predict the magnitude of the economic consequences of diesel emission fraud."

Mr. Diess "will continue to perform his duties within the company with an absolute commitment," the statement said.

2nd speed: The saga of Nissan and Carlos Ghosn could never end

They have each been fined by the Securities and Exchange Commission, according to Bloomberg. You may remember, Ghosn was Nissan CEO for more than ten years before being crushed and now fighting charges of financial misconduct.

By Bloomberg:

Nissan has been fined $ 15 million for these allegations, while Ghosn, 65, has been fined $ 1 million, the Securities and Security Commission said. Exchange Commission Monday in a statement.

The SEC said the Japan-based automaker granted Ghosn broad authority over the company's salary decisions, with the surprising power to set pay for itself, other executives, and directors. This eventually led Ghosn – with the substantial help of its subordinates – to exclude more than 90 million US dollars from its own public statements to investors. Ghosn has also taken steps to increase its retirement allowance by $ 50 million, according to the regulator.

Ghosn is out of jail yet, while he is fighting the allegations. This may be the slightest consolation, for he will probably spend the rest of his life in dark rooms full of lawyers.

Ghosn had a system.

In 2009, due to an imminent change in disclosure rules for Japanese directors in Japan, "Mr. Ghosn was worried about the criticisms that the Japanese and French media could raise if his total remuneration became known to the general public, "said the SEC.

Each year beginning in 2011, an employee "prepared for Ghosn's approval a document summarizing Ghosn's total fixed compensation, the compensation paid out and the remaining remuneration not paid and not disclosed". , says the complaint. The agency said the undisclosed compensation for Ghosn was about $ 94 million.

In order to pay undisclosed compensation, "Ghosn and his subordinates sought numerous ways to pay his undisclosed compensation through Nissan-related entities without disclosure," the complaint said. While considering paying for this using Nissan's subsidiaries, they instead decided to defer payments for an undisclosed later date, according to the agency.

According to the SEC, total compensation, compensation paid and deferred compensation were tracked each year in a spreadsheet. A Nissan employee "showed or provided Ghosn with the reports he prepared each year to determine the total remuneration, paid and deferred, of Ghosn, as well as the spreadsheets he maintained and updated each year and which followed the same information, "says the complaint.

3rd gear: Ford recalls more than 322,000 cars due to possible battery fires

The cars are all in Europe, by Automotive News.

The recall concerns Mondeo, S-Max and Galaxy vehicles built between February 2014 and February 2019, a Ford spokesman told Automotive News Europe.

Ford said that a battery acid leak around the negative terminal of the battery could result in battery monitor system failure. As a result, the battery could overheat and present a potential fire hazard.

I love battery acid leaks.

4th gear: NIO is not in the best of places

A company that some people call China's Tesla loses cash much faster than Tesla itself.

By Bloomberg:

NIO Inc., based in Shanghai, is expected Tuesday to have lost 2.6 billion yuan (about $ 369 million), about $ 4 million per day, in the second quarter, according to the average of two analysts' estimates. That would bring to about $ 5.7 billion the losses accumulated within the company, backed by tech giant Tencent Holdings Ltd., since the founding of the automaker by William Li in 2014.

Cost overruns, low sales and significant recalls have caused NIO to plunge about 74% since its market value hit a record 11.9 billion dollars about a year ago. More generally, the company's reversal of fortune illustrates why there is growing concern that China has created a bubble of electric vehicles about to explode.

The Financial Times says that there will also be layoffs.

The recall costs of thousands of vehicles exceeding battery concerns and declining sales pushed the group to a net loss of R 3.3 billion ($ 478.6 million) in the quarter ending June, pushing US listed shares down 10.5% on Tuesday.

General Manager William Li said the group is expected to cut 2,000 of its 10,000 or so employees and sell non-core businesses by the end of the year to limit cash flow, while Company is about to collapse.

He was also forced to cancel his appeal regarding the results of the second quarter.

Nio blamed the slowdown in the Chinese auto market as well as lower demand for its vehicles and services for its poor performance.

To make cars is difficult.

5th speed: Uber gains more time in London

Uber probably has no sustainable business model, but in London, at least, he has now obtained a license to operate for two months. Its existence in this city has been threatened for some time.

From Reuters:

Transport for London (TfL) rejected Silicon Valley's license renewal application in 2017 due to failures in its approach to reporting serious criminal offenses and conducting driver background checks, which resulted in subject to prosecution.

In 2018, a judge awarded Uber (UBER.N) a 15-month probationary license, which expires on 25 September, after the company made several changes to its business model in London, its main European market. .

TfL stated that the new two-month license was accompanied by "new conditions to ensure the safety of passengers" and that she wanted more details from the company.

"Uber London Limited has obtained a two-month private rental operator license to allow the review of additional information we request prior to the review of any prospective authorization applications," he said. said a spokesman.

Conditions involve things like driver checks and insurance. I've also enjoyed this quote from the Mayor of London.

Mayor Sadiq Khan, who is also president of TfL, has been a longtime critic of Uber. He told LBC radio last month that they had to follow the rules.

"You will know my track record that stands up to big boys, and they are boys, and make sure everyone respects the rules," he told his listeners during a phone conversation. "I do not care about the number of lawyers you employ nor the size of your public relations budget."

Reverse: Honda is older than you think

Neutral: What is your favorite Honda vehicle?

You meet the nicest people on a Honda, I'm told.