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    Porsche CEO's Office Raided by German Prosecutors

    Is karma catching up to them Smiley

    https://www.caranddriver.com/news/a27628794/porsche-office-investigation-germany/

    Some 176 officials and 10 prosecutors seized and removed evidence, with the charge centering on alleged excessive payments to the former head of the works council.

    On Tuesday, prosecutors in Stuttgart, Germany, raided Porsche's headquarters, reportedly including the offices of CEO Oliver Blume (pictured above), chief financial officer Lutz Meschke, and HR chief Andreas Haffner. Their purported offense: overpaying the notorious head of the works council, Uwe Hück.

    Yesterday's raids were carried out by 10 prosecutors assisted by 176 additional personnel, including police. Data carriers and mobile phones were seized. The raids also covered a second topic: A member of the financial authorities is suspected to have passed secret information to an accountant retained by Porsche.

    Hück had a strong impact on Porsche, often weighing in on strategic decisions and product development. His contributions have repeatedly irked company management, but he has played an important role in shaping Porsche's current image and product portfolio. The works council has significant obstructionist powers.

    According to Germany's labor law, members of the council should be paid what they would have earned in a typical company career. Hück, who started out as a painter, ended up making the equivalent of about $500,000 per year. It is unlikely that he would have risen to this income bracket on the merit of his performance in the paint shop.

    In Germany's reality, members of works councils have often received relatively high compensation. Some of their duties resemble those of actual board members, and companies have often decided to compensate them somewhat generously. The Stuttgart prosecutors blame the company not only for overpaying Hück, but also for writing off the compensation as an expense. Porsche should have paid higher taxes instead, they claim.

    Hück himself—who left the company in February 2019 to go into politics through the Social Democrat political party—has not been the focus of investigations. "My compensation was clean," he defiantly told the German newspaper Handelsblatt.

    For decades, the German auto industry thrived on the special relationship between carmakers and labor unions. The vaunted "Deutschland AG" (or "Germany, Incorporated") made sure that government and the unions were on board with major strategic decisions, as they had an important, legally acknowledged say. But the system has been falling apart, not least due to several scandals surrounding the Volkswagen Group in the past decade. Now Porsche has become a new center of investigation.

    Porsche's statement to local newspaper Stuttgarter Nachrichten was to refuse comment "in light of the ongoing investigation."

    Stuttgart's authorities turning on Porsche at a critical time for the company, and placing the blame for alleged disproportionate payments solely on Porsche and not the recipient, proves yet again that times have really changed for German companies.

     


    Re: Porsche CEO's Office Raided by German Prosecutors

    Pathetic.  This is going to cost a lot of money and in many ways. Customers will pay the bill one way or another.

     


    Re: Porsche CEO's Office Raided by German Prosecutors

    This has nothing to do with Karma but with stupidity of how VW Group handled the whole emissions scandal. It was pretty clear that once the whole legal machine in Germany is going to roll, there will be lots of victims in the process.

    VW should have paid up, similar to the US and the whole scandal would have gone away fast. Now they are facing the aftermath and it isn't pretty. This happens when a big company angers/upsets too many people.


    --

     

    RC (Germany) - Rennteam Editor Lamborghini Huracan Performante (2019), Mercedes E63 S AMG Edition 1 (2018), Mercedes C63 S AMG Cab (2019), Range Rover Evoque Si4 Black Edition (2019)

     


    Re: Porsche CEO's Office Raided by German Prosecutors

    German authorities should be careful not to harm VW because this giant feeds a lot of mouths in Germany and elsewhere in the EU..

    Fines and penalties should be kept well within the Corporation's ability to pay without causing undue pain.

    US authorities play a different game in the grand scheme of world economic domination, and Germans shouldn't be carried away too much.


    --

    "Porsche....and Nothing else matters"


    Re: Porsche CEO's Office Raided by German Prosecutors

    reginos:

    German authorities should be careful not to harm VW because this giant feeds a lot of mouths in Germany and elsewhere in the EU..

    Too late for that I'm afraid. The government made the mistake to let VW do their own stuff, until they realized that VW messed up badly. Then, it was too late, the media was already all over VW and so were all those district attorneys who needed a win.

    Fines and penalties should be kept well within the Corporation's ability to pay without causing undue pain.

    Financially, I don't think that the emissions scandal hurt VW that badly (considering...) but it could get worse. Much worse.

    US authorities play a different game in the grand scheme of world economic domination, and Germans shouldn't be carried away too much.

    US authorities are usually led by logical thinking, German authorities (once the media is allover them) are led by "attack and destroy". Smiley


    --

    RC (Germany) - Rennteam Editor Lamborghini Huracan Performante (2019), Mercedes E63 S AMG Edition 1 (2018), Mercedes C63 S AMG Cab (2019), Range Rover Evoque Si4 Black Edition (2019)


    Re: Porsche CEO's Office Raided by German Prosecutors

    RC:
    reginos:
     

    Fines and penalties should be kept well within the Corporation's ability to pay without causing undue pain.

    Financially, I don't think that the emissions scandal hurt VW that badly (considering...) but it could get worse. Much worse.

    Glad to hear this.

    I think that around the world very few people care about the "diesel scandal" to the extent that they wouldn't buy VW Group products. In Germany, perhaps this "emissions trick" carries much more weight due to the adoption of green politics and probably the "schadenfreude" mentality.


    --

    "Porsche....and Nothing else matters"


     
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