Volkswagen Is Back In The Suppe

A new scandal suggests German carmakers are still too lax

The whistle-blower this time was ABB Asea Brown Boveri Ltd., the Swiss-Swedish conglomerate. Last year ABB auditors uncovered accounting irregularities in a project to build a paint shop for Volkswagen's Skoda unit in the Czech Republic. ABB had apparently paid millions of dollars in kickbacks to land the contract. After an investigation, ABB in December laid out the findings to VW and filed blackmail charges with the district attorney's office in Zurich. On February 17, ABB filed similar charges in the German city of Braunschweig.

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