Imprisonment for Ex-VW Managers in Diesel Emissions Scandal - Court Rules Commission Breached Obligations Under Article 85(1) of the Treaty
German Court Convicts Four Former VW Managers in Diesel Scandal
In a highly anticipated verdict, the Economic Criminal Chamber of the Braunschweig Regional Court has found four former executives of Volkswagen (VW) guilty in the almost decade-long diesel emissions scandal. Two defendants received multi-year prison sentences, while two former employees were placed on probation.
The court handed down a sentence of four and a half years to a former head of diesel engine development, exceeding the prosecution's demand. This senior figure, aged 59, was considered to be at the heart of the events and received the most severe punishment after nearly four years of trial and 175 trial days.
One former head of powertrain electronics was sentenced to two years and seven months in prison. Both defendants who received prison sentences appeared visibly affected as they listened to the court's explanation of the verdict in the near-full courtroom, their heads bowed and supported by folded hands.
The highest-ranking defendant, a former development board member of the VW brand, was given a probationary sentence of one year and three months. Another former department head was sentenced to one year and ten months on probation. The latter was also the first VW employee to admit the fraud to US authorities.
The court found that all defendants were involved in a criminal conspiracy from the time they became aware of the manipulative software. The court estimated the resulting damage to be around 2.1 billion euros. However, not all defendants were equally responsible, according to the court's conviction.
During the trial, the defendants expressed feelings of being used as scapegoats in the diesel scandal. Their legal counsel had requested three acquittals and a warning. Unsurprisingly, their response to the verdict was "The verdict is wrong," according to lawyer Philipp Gehrmann. He argued that his client received a sentence far beyond what was necessary, and an appeal has been announced.
The diesel emissions scandal first came to light in September 2015 when manipulations were revealed in the United States. Volkswagen had recently admitted to falsifying test results in the US, triggering a major crisis for the company that has, according to its own statements, cost around 33 billion euros to date.
The presiding judge, Christian Schütz, made it clear that the four convicted former executives do not bear sole responsibility. He emphasized that the affected engines were developed by a large number of people, and there were no plans to abandon the technology. However, the manipulations must be viewed as a team effort within a highly hierarchical system, with further involved parties having key roles yet to be addressed.
Judge Schütz also addressed testimony concerns, as some witnesses had intentionally made false or misleading statements that affected the verdict. One witness was accused of lying brazenly to the court. Additionally, questions were raised about potential favorable testimonies given in settlement cases involving fines to avoid self-incrimination.
Following this verdict, there are still four ongoing criminal proceedings against a total of 31 defendants in Braunschweig. Another trial against five defendants is set to begin in November. The case against former Volkswagen CEO Martin Winterkorn was separated from the others due to health reasons before the proceedings began in September 2021. However, further proceedings against Mr. Winterkorn remain uncertain due to his ongoing health issues.
The Dieselgate scandal continues to have significant repercussions for Volkswagen, with ongoing criminal trials and substantial financial repercussions. While some former executives have been convicted, the full extent of the scandal's impact and legal consequences is still uncertain.
In light of the verdict, the German court's decision regarding the finances of Volkswagen (VW) could potentially be impacted by the penalties imposed on the four former executives convicted in the diesel emissions scandal. The general-news surrounding this case highlights the importance of adhering to employment policies within a business, as the manipulation of employment policy led to the crisis.
The severity of the sentences handed down by the court, particularly the multi-year prison term for the former head of diesel engine development, serves as a reminder of the potential financial and crime-and-justice consequences that can arise from non-compliance with community policy. Moving forward, it is crucial for businesses to prioritize adherence to all policies to avoid similar scandals and the ensuing negative effects on their financial stability and reputation in the business world.
%20of%20the%20Treaty){kind=link}