German law enforcement authorities stormed into Volkswagen offices on Thursday, just as the head of the company’s North American operations was about to testify to Congress on the company’s scheme to cheat on U.S. auto emission rules.
German prosecutors from the city of Braunschweig, near VW’s headquarters in Wolfsburg, said the raid targeted documents, computers and data storage devices that would help in the country’s investigation into the automaker’s attempt to cheat emission regulations and consumers.
The Environmental Protection Agency and California regulators last month charged Volkswagen with purposefully trying to circumvent emission regulations for its line of “clean diesel” cars, which it has spent millions of dollars marketing in the United States. The cars had software that would switch off emission controls while in normal operations and switch them on only when being tested by a state or federal agency. EPA says the scheme could cost the company tens of billions in criminal and civil penalties.
Volkswagen said Thursday that it has provided a “comprehensive” range of documents to German authorities and is cooperating fully with the investigation.
Many are calling the Volkswagen scandal, dubbed “dieselgate” by the media, the biggest business crisis for Volkswagen in its 78-year history. The scandal has forced its chief executive to resign, eroded its stock price, and has prompted investigations in nearly all countries where the company sells its vehicles.
