Diesel scandal - Criminal proceedings against ex-VW boss Winterkorn continue
The emissions scandal surrounding manipulated diesel engines at Volkswagen is catching up with former Group CEO Martin Winterkorn. The Braunschweig Regional Court has reopened the proceedings on suspicion of market manipulation, as the court announced. It is not yet clear when the trial will begin.
In the indictment filed by the Braunschweig public prosecutor's office in September 2019, the defendant is accused of failing to inform the capital market in good time about the installation of an unlawful defeat device in diesel engines. At the beginning of January 2021, the proceedings against Winterkorn, who had to resign after the diesel scandal broke in 2015, were provisionally suspended due to illness.
Regional court changes course
At the time, the chamber based its decision on the so-called NOx proceedings, including allegations of commercial fraud. The expected penalty in the proceedings would not be significant in comparison. Winterkorn had denied the accusations against him and claimed that he had known nothing about the illegal activities before the manipulations became known.
In the NOx proceedings, it has not yet been possible to bring Winterkorn to trial because, according to the court, he was not in a fit state of health to do so. For this reason, the regional court is now reopening the proceedings on suspicion of market manipulation at the request of the public prosecutor's office. In addition, according to the court, it has now come to the conclusion that the penalty for violating the Securities Trading Act could have an impact after all.
Four Volkswagen managers have been on trial before the regional court since September 2021. Ex-Audi boss Rupert Stadler was already sentenced to a suspended sentence in Munich in June.
Diesel scandal brought billions for VW
In mid-December, the Braunschweig Regional Court also admitted the charges against seven other employees of the VW Group. They are accused of fraud in a particularly serious case and a violation of the law against unlawful competition. Some of the defendants are also accused of possible tax evasion. The court did not name the defendants.
The fall of 2006, when the targeted deceptions are said to have begun, was a time when VW wanted to catch up with its competitors in the difficult US market. A major marketing offensive on "clean diesel" was intended to win over more customers.
In September 2015, it came to light that the company was falsifying the measured values using hidden software codes instead of using more expensive emissions technology. These ensured that the emissions were fully cleaned in tests, but were many times higher in road use. The discovery of the scandal plunged VW into the worst crisis in its history. The car manufacturer put the cost of the "consequences of the diesel issue" at around 32 billion euros.
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- The proceedings against former VW Group CEO Martin Winterkorn, who is currently under investigation for the diesel scandal, are being handled by the Braunschweig Regional Court in Germany.
- The German public prosecutor's office in Braunschweig filed an indictment against Winterkorn in September 2019, accusing him of failing to disclose information about the illegal defeat device in diesel engines to the stock market in a timely manner.
- Four Volkswagen managers have been on trial before the Braunschweig Regional Court since September 2021, in connection to the diesel scandal.
- The Braunschweig Regional Court reopened proceedings against Winterkorn due to requests from the public prosecutor's office, citing potential impacts from violations of the Securities Trading Act.
- Ex-Audi boss Rupert Stadler was sentenced to a suspended sentence in Munich in June, after being on trial for his role in the diesel scandal.
- The emissions scandal surrounding manipulated diesel engines at Volkswagen has cost the company around 32 billion euros in "consequences of the diesel issue."
- The diesel scandal erupted in September 2015, revealing that Volkswagen had been falsifying emissions readings for diesel engines using hidden software codes, instead of implementing more expensive emissions technology.
- The emissions were fully cleaned during tests, but significantly higher in real-world use, resulting in one of the largest corporate scandals in history.
- The Braunschweig Regional Court recently admitted charges against seven other VW Group employees, accused of fraud in a particularly serious case and violating antitrust laws.
Source: www.stern.de
