TSLA Tesla Inc

   (FROM THE WALL STREET JOURNAL 12/18/15) 
   By Mike Spector 

Volkswagen AG tapped victims-compensation expert Kenneth Feinberg to run a program addressing U.S. owners' claims linked to the German auto giant's tainted diesel-powered vehicles.

Mr. Feinberg, who earlier set up compensation funds for victims of defective

General Motors Co. cars and the BP PLC Deepwater Horizon oil disaster, said he would immediately start crafting a program on Volkswagen's behalf.

Separately, Tesla Motors Inc. Chief Executive Elon Musk and others urged California regulators force Volkswagen to accelerate its offering of environmental-friendly vehicles as punishment for cheating on emissions tests with diesel-powered cars.

In addition to Mr. Musk, the letter to California Air Resources Board regulators was signed by Internet entrepreneur and former eBay Inc. executive Jeff Skoll and Michael Brune, executive director of the Sierra Club.

Representatives for Volkswagen and Tesla had no immediate comment on the letter. A CARB spokesman said, "Our focus has and will continue to be cleaning the air and advancing the cleanest vehicle and fuel technologies."

Mr. Feinberg is developing a program for Volkswagen customers using input from vehicle owners, their lawyers and others. Michael Horn, Volkswagen's top U.S. executive, said Mr. Feinberg's experience would "help to guide us as we move forward to make things right with our customers."

Mr. Feinberg's program would address U.S. owners of nearly 500,000 cars with two-liter diesel engines and roughly 85,000 vehicles with three-liter diesel engines that regulators found contained illegal software able to dupe government emissions tests. The affected brands include Volkswagen, Audi and Porsche.

Volkswagen and Audi officials were scheduled to meet with U.S. environmental regulators on Wednesday and Thursday, respectively, this week to discuss possible fixes for the vehicles, said a person familiar with the matter. Regulators are expected to address proposed fixes for the two-liter diesel engines by Tuesday.

Camille Biros, a member of Mr. Feinberg's firm who also will work on the Volkswagen effort, declined to provide a specific time frame for unveiling the program. The firm hopes to develop a protocol over the next several weeks, she said.

The hiring of Mr. Feinberg comes as Volkswagen faces civil lawsuits, criminal and regulatory probes in the U.S., Europe and elsewhere related to emissions cheating. The company has said it is cooperating with the probes.

In Germany, Volkswagen made sweeping changes to its senior management in what the company said was a move to reduce complexity and speed up decision making. The moves are designed to reduce by nearly half the number of direct reports to its chief executive, the company said.

Among the new executive appointees: Ulrich Eichhorn, managing director of German automotive industry association VDA, will lead overall research and development, while Volkswagen group services head Fred Kappler assumes responsibility for overall sales, the company said.

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Friedrich Geiger and Monica Houston-Waesch contributed to this article.

(END) Dow Jones Newswires

December 18, 2015 02:47 ET (07:47 GMT)

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