Nation/World

Volkswagen, offering amnesty, asks workers to come forward on emissions cheating

FRANKFURT, Germany — Volkswagen, trying to get to the bottom of its emissions cheating scandal, on Thursday pressured employees to tell what they know, announcing an amnesty program for informants that will expire at the end of the month.

The company has yet to explain publicly who was responsible for installing software in 11 million diesel vehicles that was designed to disguise the output of nitrogen oxide, a pollutant harmful to the lungs. Volkswagen also admitted, just last week, that it underreported levels of carbon dioxide produced by about 800,000 of its diesel and gasoline vehicles in Europe and that had it exaggerated their fuel economy.

In a letter to employees on Thursday, Herbert Diess, chief executive of the division that produces Volkswagen brand cars, said people who provided information would not be fired or face damage claims. Diess cautioned, though, that the company could not shield employees from criminal charges.

The amnesty offer is valid through Nov. 30, Diess wrote, according to excerpts from the letter seen by The New York Times. The offer applies only to workers who are covered by collective bargaining agreements; it excludes top management.

While corporate amnesty programs are rare, the approach has been used successfully in Germany at least once before. Siemens, an electronics and engineering company based in Munich, used such an offer in 2008 to encourage employees to provide information during an investigation into bribery of officials abroad. Dozens of employees came forward.

"It is not a common practice," said Alexandra Wrage, president of Trace International, a company in Annapolis, Maryland, that provides advice to companies on compliance issues.

"When there has been a protracted climate of secrecy or fear, this can be a very effective tool," Wrage said in an email. "It's a tacit admission, however, that the usual reporting channels have been ineffective."

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At Volkswagen, an internal whistleblower was responsible for uncovering the exaggerated carbon dioxide and fuel economy claims, which the company disclosed last week. But German media reports have said that internal investigators looking into the emissions cheating software, which came to light in September, have been hampered by a reluctance among employees to come forward.

By setting a tight deadline, Volkswagen is evidently trying to put pressure on those with knowledge to speak up soon. The internal investigation is being conducted by Jones Day, a law firm.

"Every single day counts," Diess wrote. "We are counting on your cooperation and knowledge as our company's employees to get to the bottom of the diesel and CO2 issue."

Volkswagen previously had an internal ombudsman's office that employees could go to with concerns. But the company did not have a formal amnesty program until Thursday.

Analysts and people with knowledge of the investigation said it was likely that a substantial number of people were involved in creating and installing the software, and that an even larger group was aware of it and failed to take action. The software was installed on several generations and types of diesel engines from the 2009-15 model years.

Prosecutors in Braunschweig, a city near Volkswagen's base in Wolfsburg, have been investigating the case, but have not made any arrests.

Although the company said it could not offer amnesty from criminal prosecution, if employees who come forward later faced criminal charges, "we will draw the attention of the authorities to the willingness to cooperate," Diess wrote. "Past experience has shown this speaks in the employee's favor."

He also said that Volkswagen reserved the right to transfer employees who come forward to another job, or to give them different responsibilities.

Also Thursday, Martin Winterkorn, who resigned as chief executive of Volkswagen in September within days of the emissions cheating coming to light, has cut his last formal tie with the carmaker by resigning as chairman of the supervisory board of its Audi division.

Julio Schuback, an Audi spokesman, confirmed Thursday that Winterkorn resigned Wednesday. Schuback said he could not comment on why Winterkorn remained on the board for more than a month after resigning as chief executive.

Winterkorn, despite stepping down in September, maintained that he had been unaware that software in the diesel vehicles was designed to deceive regulators. The software could recognize when a car was being tested and turn up emissions controls.

At the other times, the cars emitted up to 40 times the amount of nitrogen oxide allowed by U.S. regulations. The cars had better performance and fuel economy when the emissions controls were turned down.

Under German law, members of a company's supervisory board can be removed only by shareholders, so it would have been legally cumbersome to force Winterkorn to leave the Audi board.

Volkswagen owns 99.5 percent of Audi shares, but a small number are still held by outside investors. As a result, Audi must fulfill the legal requirements for companies listed on the stock market. Audi would have had to call a shareholders meeting to remove Winterkorn.

Volkswagen formed Audi in 1969 by combining two other carmakers, Auto Union and NSU Motorenwerke, which earlier in their histories had been independent.

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