More VW employees have to go to court

VW Employees Face New Legal Charges in Diesel Scandal

In a recent development in the infamous diesel scandal involving Volkswagen (VW), seven more group employees were charged with various offenses by the Braunschweig Regional Court. The court announced this admission of charges on a Friday, revealing that eight individuals had already been charged with manipulated diesel engines in 2020.

The court has now commenced the main proceedings with amendments to the original application. The defendants remain unnamed, and a start date for the trial has not been set yet.

As of September 2021, four VW managers have stood trial in the same region's court for their roles in the scandal that ignited back in 2015. The proceedings for former CEO Martin Winterkorn were excluded due to his health concerns. Whether or not he will ever face trial is still uncertain. Ex-Audi boss Rupert Stadler already received a suspended sentence in Munich in June of 2022.

The new Braunschweig defendants are accused of committing serious fraud and violating the German law against illegal competition. Some also face tax evasion allegations, but the court deemed the false certification and breach of trust charges brought up by the prosecutors unfounded.

According to the prosecutors' initial application, the defendants in their respective managerial positions had either promoted, supported, or negligently allowed the illegal installation of manipulation software in VW diesel cars between November 2006 and September 2015.

During this time, VW was facing intense competition in the difficult US market, with a major marketing push for "clean diesel" intended to capture more customers. The scandal came to light in September 2015 when the company was found to be falsifying emissions using hidden software codes instead of using expensive emissions technology, which ensured clean emissions during tests but emitted pollutants greatly exceeding levels during real-world driving.

This scandal marked the beginning of VW's worst crisis since its establishment, leading to financial losses, lawsuits, employee layoffs, and changes in its corporate culture.

Additional Insights

In the wake of the emission scandal, Volkswagen and Audi collectively settled over 600,000 2.0-liter TDI vehicle owners in the United States with nearly $15 billion in compensation and remediation payments for environmental impact[1]. In England and Wales, Volkswagen agreed to pay out £193 million in a settlement without admitting liability to affected owners[3]. The scandal also impacted Volkswagen employees in Germany, leading to collective bargaining disputes, strikes, and challenges to the company culture[2].