Wer wirklich wissen wolle, welche Wagen am bestgewertet seien…

“Anyone who really wants to know what vehicles are the most highly rated ones…” should not consult Germany’s Munich-based A.D.A.C. automobile club’s car rankings, because “someone who has lied before, you don’t believe any more” as Spiegel.de put it.

A giant in German consumer protection has fallen. The Süddeutsche Zeitung saw documents indicating Germany’s equivalent of the A.A.A. car club had manipulated the numbers of readers’ votes received for its “Yellow Angel prize.” Auto industry pundits are now questioning all the group’s data: blue book car values, European tunnel safety evaluations, accident statistics. “If you want to know the most popular cars on German roads, we can only recommend now that you consult the government’s reliable statistics on new registrations,” Spiegel said a competitor car club, the Stuttgart-based Auto Club Europa (A.C.E.), announced in a written statement.

The hundred-year-old advocacy group, at ~19 million members one of Germany’s largest associations and Europe’s biggest car club, was a mixed-purpose, highly entrepreneurial group that did lobbying work, tested products and services, published a magazine and promoted its magazine, but also did business as an insurer, travel agent, car rental agency, long-distance bus company and of course provided much-appreciated roadside emergency aid to members with car trouble via a large fleet of highly recognizable yellow autos. They also own some small planes and 51 helicopters, apparently, supposedly for airlifting patients to hospitals but not always. Although it certainly has defended drivers well on some issues in its lobbying work, including supporting the environmentally-friendly side of some pollution questions, its interactions with Germany’s auto manufacturers have at times been problematically “symbiotic,” a Süddeutsche.de op-ed commented. The survey for which readers’ interest was faked was apparently part of the group’s self-promotion work: the A.D.A.C. awarded its “Yellow Angel” prize as usual in a lavish evening ceremony at a royal residence in Munich on Thursday, 16 Jan 2014, calling the Süddeutsche’s publication two days before about the possible manipulations “a scandal for journalism,” only to admit to the accusations two days afterward. The magazine’s editor fell on his sword.

The A.D.A.C. had recently disagreed with the statistics cited by Germany’s new transportation minister Alexander Dobrindt (C.S.U.) and his colleagues in support of the C.S.U.’s biggest goal from the recent election: to impose a car toll on non-German drivers entering Bavaria. Now the A.D.A.C.’s statistics are no longer considered reliable.

Update on 24 Jan 2014: Critics are calling for restructuring of the sprawling “anachronistic” A.D.A.C., saying a car club that takes in 2 billion euros annually can no longer be run like a pigeon fanciers’ association.

Update on 17 Feb 2014: Auditor Deloitte only had access to data going back to 2009, but there appeared to be some general trends in how A.D.A.C. manipulated the automobile brands that were made the official winners of the “readers’ choice” Yellow Angel award. No car manufacturer had two models among the top three winners, even though that did happen several times. Preference appears to have been given to new models. When they announced the auditor’s findings, both A.D.A.C. and Deloitte were still sticking with their theory that the results were manipulated by lone gunmen acting alone, said Süddeutsche.de.

Update on 25 Feb 2014: A.D.A.C.’s business manager has now resigned, after the club’s president resigned, after the communications director-and-magazine editor fell on his sword. >200,000 members have cancelled their memberships.

Update on 09 Mar 2014: Income tax is collected by the states in Germany so I presumed it was the Bavarian tax authority that examined the A.D.A.C.’s tax returns from 2007 to 2009 and decided the club owed 500 million euros in back taxes. The club did not pay an insurance tax even though it “provided grounds for an insurance relationship relevant to insurance tax law” [“ein versicherungssteuerrechtlich relevantes Versicherungsverhältnis begründet“]. But apparently this announcement was made by the federal finance ministry [Bundesfinanzministerium]. The ministry said there would be no criminal trial if the A.D.A.C. paid the half billion. The Registration Court at the Munich Local Court [Registergericht beim Amtsgericht München] is examining whether A.D.A.C. still fulfills the requirements for Verein status, in view of its business activities.

Meanwhile, Spiegel.de described a Wirtschaftswoche article reporting that federal highways money that was allocated but not spent in time in other states got sent to Bavaria, to the tune of an extra 140 million euros in 2013. Four other relatively wealthy states also received extra highways funding in 2013 that poorer states such as Berlin had to give back after not managing to spend it building highways: Lower Saxony (+80 million euros), Hesse (+47 million euros), Rhineland-Palatinate (+40 million euros), Saxony (+38 million). Bavaria’s total federal highways funding in 2013 was 1240 million euros (including the extra 140 million).

Update on 04 May 2014: Spiegel.de has received information that the A.D.A.C. auto club owned about 3.5 billion euros in 2012 in stock, bank accounts and real estate. With its dozens of subsidiaries, the A.D.A.C. auto club had a 2012 gross of nearly 1 billion euros, with about 85 million euros profit. Their next project is to open a car repair franchise, with 150 workshops.

Structurally, a Beirat has been added to the association’s management, whose members include someone from Transparency International and a former judge from Germany’s Constitutional Court. Apparently the A.D.A.C. did not and does not have a supervisory board, despite the enormous wealth and power controlled by the club. After the recent manipulation scandal became public, they added the new Beirat or additional advisory board in lieu of a more powerful supervisory board.

Spiegel wrote that the new Beirat, “at their first meeting before Easter, did not have the impression that the club was starting a transparency offensive. Rather, the top management at A.D.A.C. seemed motivated by the question of what actions would have to be taken for the club to retain its legal form of an e.V. registered association. The Munich Registration Court has been reviewing this privilege, which gives the A.D.A.C. certain advantages, for weeks now.”

(Vay ah   VEE ah click   VISS en   VULL ah,   VELL chh ah   VOGG en   om   best gah VAY ah tett   zye en)

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