Volkswagen at the Spotlight
Another controversy that Europe’s largest automaker is facing is with regards to one former German state lawmaker who was penalized for using Volkswagen’s company funds to hire prostitutes according to prosecutors recently.
Last month Guenter Lenz, 47 has resigned as head of the employee council at Volkswagen’s commercial vehicles division. He has earlier given up his seat at the state parliament of Lower Saxony where he represents the centre-left Social Democrats.
Lenz was convicted on two counts as being an accessory to breach of trust and was required to pay a fine amounting to 11,250 euro, or about $16,290 (Canadian Dollar).
Lenz was accused of using prostitutes and paying them using company funds during his travels to Seoul and India for the years 2001 and 2002. The prosecutor said that Lenz has spent around 600 euros or $860 for the prostitutes. The expenses were charged to VW by Klaus-Joachim Gebauer who is a former personnel executive who was also charged with breach of trust.
The controversies does not end yet, Porsche the major and controlling shareholder of Volkswagen has finally succeeded in gaining the permission of VW’s shareholders representing less than 1 pct of voting rights to allow the German sports car maker to make a takeover bid for Europe’s largest automaker.
The company was able to gain 172,218 common shares and 68,262 preference shares. The total stake owned by Porsche in VW has increased to 30 pct-threshold last March giving it the right to make a mandatory takeover bid to all shareholders. I wonder what changes Porsche will impose on Volkswagen one it has taken full control of Europe’s largest automaker.
