VW Suspends Its Head of Powertrain Electronics

Volkswagen AG has suspended Hanno Jelden, its head of powertrain electronics, on suspicion he helped develop and install software in 11 million diesel-powered vehicles that enabled them to cheat on government emission tests, according to media reports.

Bild am Sonntag cites VW sources who say Jelden has been under investigation for fraud by German prosecutors. The weekly newspaper reports he has so far declined to tell VW’s own investigators whether any members of the company’s board knew of the wrongdoing. Bild says VW’s probe has cleared former CEO Martin Winterkorn who resigned when the scandal became public in mid-September.

Separately, Bloomberg News reports that Matthias Mueller, who succeeded Winterkorn, will update German Chancellor Angela Merkel on the company’s investigation when the two visit China this week. Mueller also will meet with executives of VW’s two Chinese partners—FAW and SAIC (First Automobile Works and Shanghai Automotive Industry Corp.)—to brief them on the scandal, according to Bloomberg.

China’s environmental agency, like its counterparts in the U.S., Europe and Japan, is conducting its own probe. Reuters says Germany’s transport minister also plans to meet this week with officials at the Dept. of Transportation and Environmental Protection Agency to discuss the VW scandal.