German Prosecutors Investigate Kickback Allegations against Volkswagen and Ford

Prosecutors in Germany are widening an investigation into white-collar crime, announcing examinations of kickback allegations against Ford and Volkswagen. The move follows a report published in the weekly magazine Focus, which claimed employees at both auto makers were involved in kickbacks. Prosecutors in Braunschweig will investigate Volkswagen, while those in Cologne will examine Ford's German subsidiary. The investigation is part of a larger probe into corruption, which also involves Opel, the German subsidiary of General Motors Corporation.

Key Takeaways:

• Prosecutors are investigating up to 65 Opel employees and 180 others from 40 supplier companies.
• Volkswagen A.G. and the German subsidiary of the Ford Motor Company have denied wrongdoing.
• Eckhard Jokisch, a member of the Ford subsidiary's board, reportedly received $125,000 in 1988 from Unikeller, a Swiss auto parts company.
• Unikeller's internal documents suggest a second Ford executive also received a payment.
• Volkswagen said it was unaware of the reported payment but is ready to cooperate with investigators.
• Focus cited internal documents from Unikeller as evidence of kickback payments to executives from both Volkswagen and Ford.
• Prosecutors in Braunschweig are opening an inquiry into Volkswagen, while those in Cologne are investigating Ford's German subsidiary.
• The investigation is part of a larger probe into corruption involving multiple companies and employees.

Statistics:

• $125,000: The amount reportedly received by Eckhard Jokisch, a member of the Ford subsidiary's board, from Unikeller in 1988.
• 65: The number of Opel employees being investigated by prosecutors.
• 180: The number of individuals from 40 supplier companies being investigated by prosecutors.
• 40: The number of supplier companies involved in the investigation.
• 2 cities: The number of cities participating in the investigation, Braunschweig and Cologne.

Sources:

• "Prosecutors in Germany Investigate Kickback Allegations against Ford and Volkswagen." Focus weekly magazine.
• "Volkswagen, Ford Deny Wrongdoing in German Kickback Probe."