The scandal swirling around Germany’s largest listed company had its beginnings in an attempt to crack the U.S. market, the missing link in VW’s global footprint. But, as Handelsblatt details, what began as expansion ended in deception (piecing together the events that led up to the scandal,based on the facts as they are currently known).

as Handelsblatt details,,

Volkswagen, the world’s largest automaker, has been brought to its knees by the emissions cheating scandal. The company’s share price has been virtually halved, its reputation is in tatters, customers are furious and employees are distraught.

Handelsblatt pieces together the events that led up to the scandal, based on the facts as they are currently known.

The following chronology is based on the work of six reporters and correspondents, who analyzed corporate documents and spoke to many of the people involved.

Chapter 1: The Big Plan is Hatched in Wolfsburg

February 2005

Wolfgang Bernhard becomes head of the group’s core VW brand and, with the help of CEO Bernd Pischetsrieder, begins developing a new engine that will work with “common rail injection.” The new engine is to be used above all in the United States, where VW wants to start growing again. The group hopes that diesel engines, which are more economical and accelerate quickly, will help it gain ground against U.S. and Japanese rivals. There is one problem, however: The U.S. authorities have the strictest environmental standards.

May 2005

Mr. Bernhard entrusts the new project to Rudolf Krebs, a developer at VW’s Audi brand. It quickly becomes apparent that it will be impossible to comply with U.S. emissions standards using current technology. Their solution is “adblue,” a technology used by German carmaker Daimler. Developers at VW and Audi are strongly opposed to the use of “adblue” in the planned engine, which later will come to be known as the EA 189, the engine containing the emissions cheating device. Mr. Bernhard is undeterred and presses on with plans for the new engine to incorporate “adblue” and common rail injection.

Fall 2006

The first prototype is tested in South Africa. Martin Winterkorn, the head of Audi, and Ferdinand Piëch, the chairman of the VW group’s supervisory board and a major shareholder, are reported to have been present, but are not said to have been impressed.

November 11, 2006

It emerges that Daimler and the VW group will offer diesel cars in the United States under the joint label “Bluetec.”

Chapter 2: The Plan Takes Shape in Wolfsburg

January 7, 2007

VW subsidiary Audi launches its diesel offensive in the United States at the Detroit Motor Show. It is the first German manufacturer to do so. Wolfgang Bernhard does not attend the show, which surprises journalists. It soon emerges that he is to leave the company at the end of January, after less than two years in his post.

February 2007

Martin Winterkorn is appointed as chief executive of the VW group. From his first day in office, he is aware that the group’s U.S. business is floundering. He knows that only diesel engines will enable VW to gain significant market share in the United States and to fend off Japanese rival Toyota and its hybrid drive.

May 2007

Mr. Winterkorn restructures VW’s development activities, dispatching engines chief Rudolf Krebs to the group’s Salzgitter plant and replacing him with Wolfgang Hatz, while putting Ulrich Hackenberg in charge of development. Both Mr. Hatz and Mr. Hackenberg were close confidants of Mr. Winterkorn at Audi.

July 20, 2007

The new Euro 5 and 6 emissions standards come into force in the European Union. Diesel engines in particular are to become cleaner. Manufacturers must ensure that vehicles do not exceed limits in “all operating conditions.” National authorities are called upon to check manufacturers’ specifications. The need to check whether manufacturers are using defeat devices is explicitly mentioned in regulation No. 715/2007.