Convicted for emissions cheating
Four former managers at the Volkswagen Group have been convicted by a court in Germany for their roles in the diesel emissions scandal, which involved manipulating the test results of millions of vehicles.
Jens Hadler, who led diesel-engine development from 2007-11, has been jailed for four-and-a-half years over the sale of more than two million affected cars.
Former top engineer Hanno Jelden has received two years and seven months for aggravated fraud linked to some three million units.
Ex-executive Heinz-Jakob Neusser was given a suspended sentence of one year and three months for his role in the emissions-cheating scheme, which began after it was discovered vehicles were fitted with software to sidestep pollution rules.
A lower-ranking manager received a suspended sentence of one year and 10 months. All four had denied the charges and had sought acquittals.
VW admitted to US regulators in September 2015 that it had cheated on emissions tests.
The executives were charged in 2019 with having vehicles equipped with emissions-software manipulation in a case that concerned nine million cars sold in Europe and the States. During the trial, the court narrowed the case to fewer than four million units.
At the centre of the allegations was that cars were kitted out with so-called defeat devices leading to two different sets of results depending on whether the vehicles were tested in the lab or used on the streets, Judge Christian Schütz said.
On the streets, in a “real drive” scenario, emissions of nitrogen oxides were much higher than during testing.
“The authorities certifying the cars were not told the emissions were much higher in real drive,” said the judge. “It’s crystal clear this wasn’t in line with the law.” The sentences were reduced due to the long time the prosecution took to present its case.
All men committed aggravated fraud by participating in a group whose aim was to deceive customers, Schütz said. The key decision was taken at a meeting in 2006 when three men, including Jelden, decided to go ahead with the software rigging.
The judge added the managers were not the only ones responsible for the scam and that many others at VW participated. However, all the accused had leading roles and committed crimes for many years.
Hadler got the longest term because he had led the diesel-engine development since 2007. His “word had meaning within VW, he was heard by his superiors”, Schütz said. “He had the capacity to stop things.”
The diesel affair sparked global outrage. VW itself settled the criminal probe in 2018 by paying €1 billion – around NZ$1.85b – to German prosecutors.
The diesel-emissions scandal has so far cost the automaker more than €33b, including hefty sanctions that were part of a deal with US authorities. The company is still facing civil litigation in its home country, including a €9b investor class action.
While America quickly charged and convicted several VW managers, Germany has lagged behind, reports Automotive News Europe.
Rupert Stadler, the former chief executive of VW’s Audi unit, received a suspended term in 2023. That verdict is pending on appeal. Ex-VW CEO Herbert Diess and VW chairman Hans Dieter Pötsch settled a market-manipulation probe in 2020 with both agreeing to pay €4.5m.
Former CEO Martin Winterkorn was originally charged alongside the four ex-managers, but his trial was postponed due to health reasons. It started for a short time last year only to be delayed again over a medical condition. Winterkorn has denied any wrongdoing.
