Volkswagen’s problems continue as the German automaker deals with allegations it swiped unlicensed technology from a hybrid tech developer.
The complaint was lodged by hybrid tech firm Paice and alleges that Volkswagen, and subsidiary brands Audi and Porsche, used the hybrid tech firm’s technology without a license in April 2016.
The complaints have prompted the U.S. International Trade Commission (ITC) to investigate.
“It’s clear that the ITC takes our claims seriously and believes a full investigation is warranted,” Paice CEO Robert Oswald told reporters. “This investigation will prove that VW, Audi, and Porsche are using our patented hybrid vehicle technology without a license and should not allowed to import these vehicles into the United States.”
There is the off chance that Paice is a serial litigator, pursuing lawsuits against several automakers for taking the company’s technology without permission.
Paice founder Alex Severinsky, for example, has sued Toyota, Hyundai and Kia for swiping hybrid technology. He is currently chasing after Ford for similar reasons.
The complaints could land another public relations blow to VW, as a possible lawsuit could result in the nixing of hybrid imports into the U.S. A hit to its hybrid vehicle market in the U.S., especially so soon after the fuel emission scandal, could be especially harmful to a company hoping to refurbish its brand.
The ITC’s investigation does not mean VW is guilty of ripping off Paice’s technology. But it is likely the company would prefer to settle out of court, given the exposure of VW’s hybrid and electric vehicles in the U.S.
The automotive industry as a whole has taken it on the chin over the past year, starting with VW’s September 2015 fuel emission scandal and ending with Mitsubishi fuel economy cheating scandal in April of this year. The latter of which forced Mitsubishi President Tetsuro Aikawa to resign.
“I must step down so that a fundamental reform can take place in the vehicle development department,” Aikawa, who led Mitsubishi’s development division, told The Wall Street Journal.
VW lost billions of dollars due to last year’s fuel scandal, but this was apparently just a speed bump, as the German automaker is now one of the top auto sellers in the world.
The company said it hemorrhaged more than $6.2 billion in 2015, which, if put into perspective, means VW lost more money in that year than it made in profit ($2.8 billion) during all of 2014.
Yet somehow, the scandal-plagued company is now atop the market, pummeling competitors like Toyota and General Motors.
If VW plays its cards correctly, and if settles its issues with Paice out of court, then the technology swiping scandal could be just another bump in the road.
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