Nearly a decade after Volkswagen’s “dieselgate” scandal rocked the automotive industry, former CEO Martin Winterkorn is finally facing trial. The scandal, which came to light in 2015, revealed that VW had been using software to manipulate emissions levels in millions of vehicles worldwide. This led to one of Germany’s most significant post-war industrial scandals, tarnishing the reputation of the auto giant.
Winterkorn faces a range of charges, including fraud related to the use of defeat devices to deceive regulators during emissions testing. If convicted, he could potentially face up to 10 years in prison. Additionally, he has been accused of giving false testimony to a parliamentary committee investigating the scandal in 2017. The alleged fraud is said to have affected around nine million vehicles sold in Europe and the United States, resulting in significant financial losses for buyers.
Another charge Winterkorn is facing is that of market manipulation. He is accused of withholding information from the capital market about the emissions-rigging software, thus violating German stock market regulations. This failure to disclose pertinent information in a timely manner could have had serious repercussions on Volkswagen’s stock value and investors.
While Winterkorn was originally supposed to stand trial alongside other VW executives in 2021, the proceedings were delayed due to his health issues. Recent reports suggest that his health is still a concern, raising questions about his ability to endure the lengthy trial process. Despite these challenges, the regional court in Braunschweig has decided to move forward with the trial, scheduling a total of 89 hearings through September 2025.
In 2021, Winterkorn reached a settlement with Volkswagen, agreeing to pay the company 11 million euros in relation to the scandal. This settlement, however, does not absolve him of criminal charges. The broader fallout from the dieselgate scandal has already cost VW approximately 30 billion euros in fines, legal fees, and compensation to affected car owners, primarily in the United States.
As the trial of Martin Winterkorn begins, the automotive industry is once again reminded of the far-reaching consequences of corporate misconduct. The outcome of this trial will not only determine Winterkorn’s legal fate but also send a message about accountability and transparency in the business world. Whether justice will be served or if Winterkorn will be able to evade serious punishment remains to be seen. Nonetheless, the legacy of the dieselgate scandal will continue to cast a long shadow over Volkswagen and the entire automotive sector.