The Volkswagen “dieselgate” scandal first came to light in 2015 when the company admitted to installing software to manipulate emissions levels in millions of vehicles worldwide. This revelation caused a major crisis for the German auto giant and has since become one of Germany’s biggest post-war industrial scandals.
Former Volkswagen CEO Martin Winterkorn is now set to go on trial for his involvement in the scandal, nine years after it first came to light. Winterkorn faces charges of fraud over the use of defeat devices, which were used to make cars appear less polluting in lab tests than they were in real-world conditions. If convicted, he could face up to 10 years in jail.
Winterkorn has been accused of conspiracy to commit fraud, with allegations that buyers of Volkswagen vehicles were deceived about their characteristics due to the use of defeat devices. This alleged fraud affected approximately nine million vehicles sold in Europe and the United States, resulting in significant financial losses for buyers.
In addition to fraud charges, Winterkorn is also facing a charge of market manipulation. He is alleged to have deliberately failed to inform the capital market in a timely manner after discovering the emissions-rigging software, in violation of German stock market regulations.
Winterkorn’s trial was originally scheduled for 2021 but was postponed due to his poor health. Despite these concerns, a regional court in Braunschweig has announced that the trial will proceed this month. However, there are renewed worries about Winterkorn’s ability to endure the lengthy trial process, especially after reports of his recent operation in June.
The dieselgate scandal has already cost Volkswagen around 30 billion euros in fines, legal costs, and compensation to affected car owners, primarily in the United States. While Winterkorn had previously reached a settlement with the company in 2021, agreeing to pay 11 million euros, his upcoming trial could have further implications for Volkswagen.
As the trial of former Volkswagen CEO Martin Winterkorn gets underway, the dieselgate scandal continues to have far-reaching consequences for the company and its executives. The outcome of this trial could provide further insight into the extent of the fraud and market manipulation that occurred at Volkswagen, shedding light on the repercussions of one of the auto industry’s most significant scandals.