Volkswagen: Ex-manager convicted – The diesel scandal continues!

Volkswagen: Ex-manager convicted – The diesel scandal continues!

In the judgment announced today by the Braunschweig Regional Court, four former Volkswagen executives were found guilty of fraud in connection with the diesel scandal. The process, which lasted almost four years, was particularly characterized by the many corona conditions under which the negotiation began in 2021. Around 150 witnesses were heard, but their statements often remained contradictory. The Commercial Criminal Chamber sentenced two of the defendants to prison sentences of several years, while the other two received suspended sentences. For many in the industry, the verdict represents a significant step in the legal investigation of the scandal that was uncovered by the US environmental authorities in 2015 when the manipulation of emissions values ​​became public.

An important player in this trial, former VW CEO Martin Winterkorn, was not among the defendants. His trial was separated for health reasons. Winterkorn initially apologized on September 22, 2015, shortly after the scandal became known, and resigned a day later. However, he always denied his responsibility for what happened. In 2024, he was interviewed as a witness in the investor trial, but this was interrupted by an accident, so it remains unclear when it can continue.

The mechanisms of fraud

The defendants in Braunschweig were accused of developing illegal software to manipulate emissions values ​​in order to portray VW diesel cars as more environmentally friendly than they actually were. This deception was introduced in the 2000s when VW tried to remain competitive in the American market and avoid rigorous emissions standards. After the manipulation became known, Volkswagen paid more than 25 billion US dollars in fines and compensation in the USA, while in Germany only former Audi boss Rupert Stadler has been sentenced to a suspended sentence, the legal effect of which is still pending.

The four defendants who had to stand trial in Braunschweig expressed disappointment at the severity of the sentences imposed and could not help but see themselves as pawns. A former head of diesel engine development received a prison sentence of four and a half years. The other two who received suspended sentences were surprised at the sentence imposed. The legal investigation into the diesel affair is far from over after this verdict, as there are further proceedings against a total of 31 other defendants.

Legal consequences for buyers and Volkswagen

After the manipulation software was announced, the legal claims of buyers in Germany remained unclear. While Volkswagen has offered compensation between $7,000 and $16,000 in the United States, the company rejects similarly high compensation in Europe. Around 7,000 buyers have filed individual lawsuits against Volkswagen in Germany, and there are already almost 40,000 plaintiffs through the myRight platform. These legal actions could prove complex and time-consuming as the courts are overwhelmed with numerous lawsuits.

Legal uncertainties will continue to exist as buyers face challenges due to different statutes of limitations and the complexity of claims for damages. The manipulative software is classified by courts as a material defect, which indicates numerous legal options for buyers.

In conclusion, it should be noted that the events surrounding the diesel affair and the verdicts against the former management members of VW represent an important legal chapter in the company's history. The further processes and the legal claims of the buyers will continue to accompany the public and legal discussion about Volkswagen in the future.

For more information, read coverage from vol.at, t-online.de and wirtschaftsdienst.eu.