Filed under: Etc., Europe, Government/Legal, Volkswagen, Earnings/Financials

We haven't heard about the Volkswagen Law in a while, but that doesn't mean the EU Commission has forgotten about it. The law gives the state of Lower Saxony, with a 20.1-percent stake in VW, veto rights on a takeover deal, which means no one's ever going to take over VW because its home state won't allow it. The law came in handy when Porsche was working to gobble up Volkswagen. The law was struck down by the EU Court of Justice in 2007. Germany then scrapped the old VW Law but rewrote another one that gave Lower Saxony the same rights with different legalese circumventing the spirit of the court's decision.

The EU competition oversight body is taking Germany back to court over the law, but wants to put some pain into the judgment: it wants Germany fined €31,000 ($41,000 USD) per day for every day since the original 2007 judgment. It also wants the court to issue a second ruling, and if Germany doesn't bring the law into line with the ruling, the EU Commission wants Germany fined €282,725 per day (nearly $375,000) until the Germans comply.

No federal German authorities have responded to the latest EU thrust, but the premier of Lower Saxony offered this: "Doesn't Europe have better things to do?"Germany in court again over "VW Law," could face fines of nearly $375,000/day originally appeared on Autoblog on Sun, 27 Nov 2011 16:04:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments

Staffs-VW Forum for VW News Feeds