Jail for Michael Horn and other VW execs?
Volkswagen Group of America has announced the departure of Michael Horn, 54, president and CEO. “Through mutual agreement with Volkswagen AG, Horn will be leaving to pursue other opportunities effective immediately,” VW said in a classic after business hours statement.
Thus the history of sudden death departures at VW in North America continues. When sales previously slumped, Horn became CEO after the abrupt resignation of Jonathan Browning when VW brand sales fell in 2013. The decade before VW said it would triple sales here in 10 years. The lack of trucks and SUVs doomed the plan from the start.
Now the stakes are much higher than sales. VW does not have a fix for its dirty diesels in the U.S., almost 600,000 vehicles. It also faces $18 billion dollars in fines in the U.S., a staggering number that does not include ongoing class action lawsuits from consumers.
Back in October of 2015, a VW hearing at the U.S. House Subcommittee on Oversight and Investigations showed what AutoInformed characterized as the usual posturing as Volkswagen Group of America President and CEO Michael Horn tried to say as little as possible about a lawbreaking scheme, while feigning ignorance of the dirty diesel problem that his entire ‘Clean Diesel’ sales and marketing program was built around.
Horn said that three people have been suspended. Otherwise, he stuck by the know-nothing party line from the outset. No one in the room believed that the Head of VW in the US when told in 2014 that its “Clean Diesel” marketing campaign was a sham did not vigorously pursue the problem. The new defeat device in play here was now effectively destroying what was left of VW credibility as the unexplained gap on what happened between 2014 and 2015 is bigger than the Grand Canyon.
For example, in March of 2014, just before the defeat programming was revealed, Horn said, “Volkswagen Group of America is united not only by our devotion to building quality vehicles, but also by our commitment to doing what’s right for the environment, our communities and our employees.”
Fast forward to Horn at the hearing: “We have not had the opportunity to review all aspects of this matter, indeed the investigation is just beginning.” These were laughable opening remarks. “Therefore, my testimony and my answers to your questions will, by necessity, have to be considered preliminary and based on my best current recollection and information.”
“In the spring of 2014 when the West Virginia University study was published, I was told that there was a possible emissions non-compliance that could be remedied,” Horn said. “I was informed that EPA regulations included various penalties for non-compliance with the emissions standards and that the agencies can conduct engineering tests which could include ‘defeat device’ testing or analysis. I was also informed that the company engineers would work with the agencies to resolve the issue. Later in 2014, I was informed that the technical teams had a specific plan for remedies to bring the vehicles into compliance and that they were engaged with the agencies about the process.”
It was laughable then; laughable now. The technical plan to remedy did not comply with the regulations either.
On an interim basis, Hinrich J. Woebcken, who was recently announced as the new Head of the North American Region and Chairman of Volkswagen Group of America, will assume the role of president and CEO of Volkswagen Group of America, while VW searches for what certainly be another German executive from within.
Michael Horn assumed the role as president and CEO of Volkswagen Group of America in January 2014 and has 25 years of experience with the Volkswagen Group. Prior to his current role, Horn served as the Global Head of After Sales at Volkswagen AG. Horn joined Volkswagen in 1990 and has held many roles of increasing responsibility within the brand over his tenure, including Head of Volkswagen sales North West Europe, Head of sales and marketing luxury class vehicles, and Head of sales for Europe.
NADA Statement on Departure of VW of America CEO Michael Horn
TYSONS, Va. (March 10, 2016)—This week’s departure of Volkswagen of America’s President and CEO Michael Horn is a significant blow to the VW dealer network, which has been operating in crisis mode for more than six months. What’s most regrettable about Mr. Horn’s departure is that it leaves more questions than answers for the 652 Volkswagen dealers across the U.S.
The impact of the diesel defeat-device scandal has not only negatively impacted dealership profitability due to a limitation of product available to sell, but, more significantly, has severely damaged the reputation of the brand in the eyes of consumers – damage we all know could take many years to overcome.
A critical step in this recovery will be for VW to honor the future product plan that Mr. Horn and VW dealers fought vigorously for in Wolfsburg. Volkswagen’s U.S. dealers have made significant investments in buildings, technology, and people over the past several years based these product commitments that we hope are not in jeopardy.
NADA calls on Volkswagen AG CEO Matthias Mueller, and brand chief Herbert Diess to meet personally with their dealers at the upcoming Volkswagen franchise meeting during the NADA Convention in Las Vegas. VW dealers deserve to hear first-hand from the company about its vision for the future of Volkswagen in the United States.