Offices of Audi and Porsche Raided by German Prosecutors

German authorities suspect Audi and Porsche committed 'fraud' and 'criminal advertising'

Offices of Audi and Porsche Raided by German Prosecutors

Posted in News

— Volkswagen says it will revamp its "VW" logo for 2019 because the emblem is "too German" and lacks emotion, whatever that means.

But the logo may be the least of VW's worries as prosecutors in that country announced they have again raided the offices of Audi and Porsche.

At least 30 prosecutors were involved in the action looking for evidence of fraud and "criminal advertising" related to the emissions scheme that has already cost the automaker billions of dollars. Prosecutors say Porsche was targeted due to possible illegal conduct by a member of management, a senior Porsche manager and a former employee.

According to German officials, 10 Porsche locations were searched as prosecutors collected documents possibly related to illegal activity.

Previous raids were conducted in 2017 by German authorities as investigators looked for evidence that BMW, Daimler and Volkswagen may have worked together to keep down prices on equipment and technology. However, the automakers said that although they did meet to discuss the technical aspects of components and parts, the meetings weren't used for any other reason.

The latest Audi and Porsche raids in Germany follow ongoing legal proceedings in the U.S. that allege the two automakers conspired with BMW, Mercedes-Benz and Volkswagen on all aspects of auto manufacturing since the 1990s.

Instead of competing against each other, class-action lawsuits in the U.S. allege the automakers worked together on auto technology and systems such as braking and electronics. In addition, the lawsuits allege the automakers teamed up to keep prices low and choose which suppliers to use.

According to plaintiffs in the U.S., Audi, Porsche and the other German automakers are guilty of conspiracy by faking competition, cheating regulators and pulling in billions in profits.