TTAC Sources: IAV Was Volkswagen's Co-Conspirator in Diesel Scandal

Ronnie Schreiber
by Ronnie Schreiber

The U.S. federal indictment of Volkswagen engineer James Liang, stemming from the automaker’s effort to cheat on emissions testing of their supposedly “clean” diesel engines, mentions an as-yet unindicted co-conspirator, “Company A”.

That firm allegedly helped Liang and his team at VW develop the software routine that only activated emissions controls when vehicles were being emissions tested. Company A was identified in the indictment as a Berlin-based automotive engineering company that is 50 percent owned by the Volkswagen group, which is also Company A’s biggest customer.

Though there was some early speculation that Robert Bosch GmbH was involved in VW’s diesel scandal, Bosch is almost entirely owned by the charitable Robert Bosch Foundation, so it can’t be Company A.

Our initial research on Company A pointed to IAV, which does a variety of work for a range of automotive firms, including powertrain software development. IAV, headquartered in Berlin, is half owned by VW AG, their biggest customer. However, Volkswagen has ownership interests in a number of companies, so in our initial reporting on Liang’s guilty plea TTAC didn’t speculate on the true identity of Company A. Since that was published, though, TTAC has been contacted by a reliable industry source who tells us that IAV is indeed “Company A”.

IAV is an international company with about 600 million Euros of annual revenue. The criminal charges against Liang were filed in the Eastern District of Michigan, Southern Division, of U.S. District Court, whose jurisdiction includes two IAV facilities.

Ronnie Schreiber
Ronnie Schreiber

Ronnie Schreiber edits Cars In Depth, the original 3D car site.

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  • Trucky McTruckface Trucky McTruckface on Sep 14, 2016

    Every time I see that picture of the Wolfsburg factory, I'm reminded of the cover of Pink Floyd's Animals. Just needs a pig balloon floating above it. Given VW's recent history, it seems rather fitting, too. They're nearly a laugh but really a cry.

  • JustInterested JustInterested on Sep 17, 2016

    Is there any proof for what is written here?

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
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