What happened to VW?

Lightmeup

Enlightened
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Aug 3, 2004
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747
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Chicago
Volkswagen appears to be in hot water in Germany. According to this article, they have been caught bribing union officials and providing prostitutes for them. VW used to be a good company, they sure seem to have gone sour lately though. I wonder if this is common practice in the auto industry, or just an isolated incident? Do you think this kind of stuff is going on in Detroit?

"Referring to the scandal, Mr Pischetsrieder said a top VW official had tried to entrap staff, luring them into "dependence" on kick-backs.

The scandal led to the resignation of VW's personnel chief, Peter Hartz, after it emerged slush funds had paid for prostitutes and perks for trade union officials on the powerful works council. That body's chairman, Klaus Wolkert, also resigned, admitting he had a stake in front companies used to channel money from VW suppliers abroad."

http://www.telegraph.co.uk/money/ma...nuId=242&sSheet=/money/2005/08/25/ixcity.html
 

spock

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Dec 28, 2004
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dayton,oh
common practice in corporate world. GM got caught using $1000/night prostitutes several years back to get "deals" they wanted. leaders of every country in the world have a public life and a private one. some "bunnies" of well known club have admitted going to country of Bahrain for 6 mo. taking cash for sex. $600,000 for 6 mo. i think was the quoted fee. well-you get the idea.
 

cobb

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Sep 26, 2004
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2,957
I had a business ethics class that talked about that. They refer to stuff like that as grease. Many third world areas you need bribs or grease money or you wont get anywhere, your luggage vanishes or you are declined a bid. In America we frown on that, however that is business as usual else where and if you want to play, you have to pay.
 

picard

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Joined
Dec 31, 2004
Messages
1,298
every company resort to any method to secure a business deal. its all about money right. They aren't working for salvation army. GM always used high end hookers to secure deal with japanese firms.

I was watching a cdn program 5th estate which mention US companies paid hookers to entertain japanese clients. Japanese men especially prefer blondes. That's a fact folks.:popcorn:
 
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