Volkswagen Law Here to Stay – For Now

The much debated Volkswagen Law most likely will remain much debated for a while, says Automobilwoche [sub]. The matter is pending  at the European Court of Justice, and no decision has been rendered, however, "an influential expert witness" (Automobilwoche) rendered the opinion that the current situation is within the law. The expert, Advocate General Nils Wahl, said in a written opinion that the European Court of Justice should reject the European Commission's argument that Germany be fined for infringing EU laws. "ECJ judges are expected to rule on the case in the next few months. Wahl's opinion is not binding, though the judges follow such recommendations in a majority of cases," says Reuters. The Volkswagen law is an institutionalized poison pill. In its old form, the 20 percent shares held by the State of Lower Saxony had veto power, protecting Volkswagen from a hostile takeover.  The EU sued, Germany lost in 2007. Volkswagen changed its stockholders agreement, which now says that important decisions need more than 80 percent of the voting shares. The bottom line is the same, however, Germany thought itself on the good side of the law. The EU Commission cried foul, and sued. The suit is not between the EU and Volkswagen, it is between the EU and Germany. from The Truth About Cars http://www.thetruthaboutcars.com

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