Porsche Executive Arrested in Connection With Volkswagen Diesel Scandal -German Prosecutors
April 20 2018 - 9:06AM
Dow Jones News
By William Boston
BERLIN--German police arrested a senior Porsche AG executive in
the wake of raids this week on the sports-car maker's offices and
factories to gather evidence allegedly linking the company to
Volkswagen AG's (VOW.XE) emissions-cheating scandal, German
prosecutors said Friday.
The massive raid involving 160 police officers and 30
investigators from state's attorneys offices in two German states
represents a significant widening of the emissions scandal
disclosed in the U.S. nearly three years ago and which has cost
Volkswagen more than $25 billion in fines, penalties, compensation
for customers and legal fees.
Volkswagen admitted to rigging nearly 11 million diesel-powered
cars worldwide to cheat on emissions tests.
As they were sifting through piles of documents, confiscating
mobile phones, and copying computer drives and other electronic
file sources on Wednesday, prosecutors ordered the arrest of Joerg
Kerner, Porsche's head of engine development, considering him a
flight risk, according to people familiar with the situation.
Porsche didn't make the executives available for comment.
The Stuttgart investigation on suspicion of fraud targets Mr.
Kerner, Michael Steiner--a Porsche board member in charge of
research and development--and a lower-level engineer who no longer
works at the company, according to people familiar with the
situation.
The arrest was first reported by German news weekly Bild am
Sonntag.
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
April 20, 2018 09:51 ET (13:51 GMT)
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