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Volkswagen executives get prison time in 'Dieselgate' scandal
Volkswagen executives get prison time in 'Dieselgate' scandal

Yahoo

time27-05-2025

  • Automotive
  • Yahoo

Volkswagen executives get prison time in 'Dieselgate' scandal

Punishments were handed out for Volkswagen (VWAGY) executives involved in the emissions-cheating scandal that rocked the auto industry a decade ago. Two former executives, Jens Hadler and Hanno Jelden, are heading to prison, while two others received suspended sentences. The case slowly ground through the European legal system, finally culminating on Monday with a panel of judges in Braunschweig, Germany, a city near Volkswagen's headquarters. It took four hours to read the sentences for the guilty. Presiding Judge Christian Schütz said the group of defendants acted as a 'gang' and described their actions as 'particularly serious' fraud. Volkswagen has admitted that some of its engineers installed software in diesel-powered vehicles that caused the cars to recognize when they were being tested for emissions and adjust their emissions to meet the standards. A criminal court filing in the U.S. District Court of Eastern Michigan in 2017 accused six Volkswagen executives of various crimes, including conspiracy. 'Purpose of the conspiracy was for to 'unlawfully enrich VW and themselves by, among other things, A) deceiving U.S. regulators in order to obtain necessary Certificates to sell diesel vehicles n the United States, B) selling VW vehicles to U.S. customers knowing that those vehicles were intentionally designed to detect, evade, and defeat U.S. emissions standards.' The criminal complaint says the conspiracy began at least as early as May 2006 and continued through 2015. Because the VW executives are based overseas and have not been extradited to the United States, the criminal proceedings have been on hold. The legal action, instead, has been in Europe where over 30 Volkswagon employees have been caught up in what has been dubbed the 'Dieselgate' scandal In 2015, when the scandal first began to unravel, the U.S. Environmental Protection Agency said that nearly 500,000 Volkswagen cars sold in the country between 2009 and 2015 had 'defeat device' software installed, which is designed to detect when a car is being tested for emissions and lower them accordingly. Meanwhile, out on the road, these cars released up to 40 times more pollution than allowed by the rules. Shareholders largely shrugged off the court action. Shares were trading 2% higher at opening today. —Jason Karaian contributed to this article. For the latest news, Facebook, Twitter and Instagram.

Four Ex-VW managers convicted in Germany over diesel scandal
Four Ex-VW managers convicted in Germany over diesel scandal

Straits Times

time27-05-2025

  • Automotive
  • Straits Times

Four Ex-VW managers convicted in Germany over diesel scandal

A hose for an emission test is fixed in the exhaust pipe of a Volkswagen Golf. A German court on May 26, 202,5 sentenced four former Volkswagen managers over their part in the "dieselgate" emissions-cheating scandal. PHOTO: AFP Berlin - Four former Volkswagen AG managers were convicted by a German court for their roles in the diesel-emission scandal, involving the manipulation of millions of cars and causing €2.1 billion (S$3.1 billion) in damages to drivers. Jens Hadler, who led diesel-engine development from 2007 to 2011, was sentenced to 4.5 years in prison over the sale of more than 2 million affected vehicles. Former top engineer Hanno Jelden received 2 years and 7 months for aggravated fraud linked to the sale of nearly 3 million cars. After a four-year trial, the Braunschweig Regional Court on May 26 also handed former executive Heinz-Jakob Neusser a suspended sentence of 1 year and 3 months for his role in the emissions-cheating scheme, which began after it was discovered that vehicles were fitted with software to sidestep pollution rules. Another lower-ranking manager who can only be identified as Thorsten D. got a suspended sentence of 1 year and 10 months. All had sought acquittals. Nearly a decade after the 'dieselgate' scandal broke, the verdicts are the tribunal's first in the criminal probe targeting senior staff at VW's main brand. The men were charged in 2019 with having vehicles equipped with emission-software manipulation in a case that concerned 9 million cars sold in Europe and the United States. During the trial, the court narrowed the case to fewer than 4 million vehicles. The core of the allegations was that cars were equipped with so-called defeat devices leading to two different sets of emissions, depending in whether the vehicles were tested in the lab or used on the streets, Presiding Judge Christian Schütz said when delivering the verdict. On the streets, in a 'real drive' scenario, emissions of toxic nitrogen oxides were much higher than during testing, he said. The diesel affair sparked global outrage and triggered the departure of VW's former chief executive officer Martin Winterkorn from the company in September 2015, just days after US authorities disclosed their investigation. Volkswagen itself had settled the criminal probe in 2018 by paying €1 billion to German prosecutors. The scandal has so far cost the carmaker more than €33 billion, 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 €9 billion investor class action. All sentences were reduced due to the long time the prosecution took. Judge Schütz also stressed that they weren't the only ones responsible for the scam and that many others at VW participated. However, all the accused had leading roles and they committed crimes for many years. While the US has quickly charged and convicted several VW managers, Germany has lagged behind. Rupert Stadler, the former chief executive officer of VW's Audi unit, was sentenced to a suspended term in 2023 but that verdict is still pending on appeal. Ex-VW chief executive Herbert Diess and VW chairman Hans Dieter Pötsch settled a market-manipulation probe in 2020, both agreeing to pay €4.5 million. Dozens of probes against other employees were dropped or they were allowed to settle and some later testified in the trial, stirring criticism by the current defendants who say they have been singled out and made scapegoats. 'We weren't part of these decisions and we wouldn't have agreed to all of them,' Judge Schütz told the accused at the May 26 hearing. There are still 31 people indicted in Braunschweig who are waiting to be tried over dieselgate. The next case is scheduled to start in November. Neusser and Hadler are also among executives charged by the US for their involvement in the scandal. Because Germany doesn't extradite its own citizens to nations outside the European Union, they have so far escaped prosecutions in the US. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.

4 former Volkswagen managers convicted in ‘dieselgate' fraud
4 former Volkswagen managers convicted in ‘dieselgate' fraud

Miami Herald

time27-05-2025

  • Automotive
  • Miami Herald

4 former Volkswagen managers convicted in ‘dieselgate' fraud

A German court convicted four former Volkswagen managers of fraud on Monday and a decade after 'Dieselgate' exposed deceptive devices installed in many Volkswagen models to pass emissions tests. Jens Hadler was sentenced to 4.5 years in prison and formerly was Volkswagen's diesel engine development chief, the New York Times reported. Hanno Jelden, a former VW engine electronics manager, received a sentence of two years and seven months in prison. Defendants Heinz-Jakob Neusser, a former systems development manager, and a former emissions expert identified as 'Thorsten D.,' received suspended sentences of 15 months and 22 months in prison, respectively. A judicial panel in Braunschweig, Germany, entered its verdicts in the court that is located close to Volkswagen's headquarters in nearby Wolfsburg. Panel chairman Judge Christian Schutz called the defendants a 'gang' and said they were guilty of 'particularly serious' fraud, the New York Times reported. He said Hadler knew of the emissions-testing defeat devices that manipulated software to ensure the vehicles would pass emissions tests since at least September 2007. Only a relatively small number of people within Volkswagen knew of the device's existence, according to emails used as evidence in the case. The trial lasted almost four years in the 'dieselgate' emissions scandal that was exposed when the U.S. Environmental Protection Agency in 2015 reported many diesel-powered VW models contained deceptive emissions-monitoring devices, Politico reported. The 'defeat devices' detected when system emissions testing was underway and automatically adjusted engine performance to ensure the respective vehicles met environmental standards. Berlin's Federal Court of Justice in 2020 ordered Volkswagen to pay up to $31,000 to each of about 60,000 German owners of diesel-powered VWs. The automaker paid billions of dollars in settlements for installing defeat devices on about 10 million vehicles sold in the U.S., Germany and other markets around the globe. Legal cases remain open against 31 other defendants, but former VW Chief Executive Officer Martin Winterkorn is not among them due to health concerns, MarketWatch reported. Winterkorn has denied any wrongdoing in the matter. Copyright 2025 UPI News Corporation. All Rights Reserved.

4 former Volkswagen managers convicted in ‘dieselgate' fraud
4 former Volkswagen managers convicted in ‘dieselgate' fraud

Yahoo

time26-05-2025

  • Automotive
  • Yahoo

4 former Volkswagen managers convicted in ‘dieselgate' fraud

May 26 (UPI) -- A German court convicted four former Volkswagen managers of fraud on Monday and a decade after "Dieselgate" exposed deceptive devices installed in many Volkswagen models to pass emissions tests. Jens Hadler was sentenced to 4.5 years in prison and formerly was Volkswagen's diesel engine development chief, the New York Times reported. Hanno Jelden, a former VW engine electronics manager, received a sentence of two years and seven months in prison. Defendants Heinz-Jakob Neusser, a former systems development manager, and a former emissions expert identified as "Thorsten D.," received suspended sentences of 15 months and 22 months in prison, respectively. A judicial panel in Braunschweig, Germany, entered its verdicts in the court that is located close to Volkswagen's headquarters in nearby Wolfsburg. Panel chairman Judge Christian Schutz called the defendants a "gang" and said they were guilty of "particularly serious" fraud, the New York Times reported. He said Hadler knew of the emissions-testing defeat devices that manipulated software to ensure the vehicles would pass emissions tests since at least September 2007. Only a relatively small number of people within Volkswagen knew of the device's existence, according to emails used as evidence in the case. The trial lasted almost four years in the "dieselgate" emissions scandal that was exposed when the U.S. Environmental Protection Agency in 2015 reported many diesel-powered VW models contained deceptive emissions-monitoring devices, Politico reported. The "defeat devices" detected when system emissions testing was underway and automatically adjusted engine performance to ensure the respective vehicles met environmental standards. Berlin's Federal Court of Justice in 2020 ordered Volkswagen to pay up to $31,000 to each of about 60,000 German owners of diesel-powered VWs. The automaker paid billions of dollars in settlements for installing defeat devices on about 10 million vehicles sold in the U.S., Germany and other markets around the globe. Legal cases remain open against 31 other defendants, but former VW Chief Executive Officer Martin Winterkorn is not among them due to health concerns, MarketWatch reported. Winterkorn has denied any wrongdoing in the matter.

4 former Volkswagen managers convicted in 'dieselgate' fraud
4 former Volkswagen managers convicted in 'dieselgate' fraud

UPI

time26-05-2025

  • Automotive
  • UPI

4 former Volkswagen managers convicted in 'dieselgate' fraud

May 26 (UPI) -- A German court convicted four former Volkswagen managers of fraud on Monday and a decade after "Dieselgate" exposed deceptive devices installed in many Volkswagen models to pass emissions tests. Jens Hadler was sentenced to 4.5 years in prison and formerly was Volkswagen's diesel engine development chief, the New York Times reported. Hanno Jelden, a former VW engine electronics manager, received a sentence of two years and seven months in prison. Defendants Heinz-Jakob Neusser, a former systems development manager, and a former emissions expert identified as "Thorsten D.," received suspended sentences of 15 months and 22 months in prison, respectively. A judicial panel in Braunschweig, Germany, entered its verdicts in the court that is located close to Volkswagen's headquarters in nearby Wolfsburg. Panel chairman Judge Christian Schutz called the defendants a "gang" and said they were guilty of "particularly serious" fraud, the New York Times reported. He said Hadler knew of the emissions-testing defeat devices that manipulated software to ensure the vehicles would pass emissions tests since at least September 2007. Only a relatively small number of people within Volkswagen knew of the device's existence, according to emails used as evidence in the case. The trial lasted almost four years in the "dieselgate" emissions scandal that was exposed when the U.S. Environmental Protection Agency in 2015 reported many diesel-powered VW models contained deceptive emissions-monitoring devices, Politico reported. The "defeat devices" detected when system emissions testing was underway and automatically adjusted engine performance to ensure the respective vehicles met environmental standards. Berlin's Federal Court of Justice in 2020 ordered Volkswagen to pay up to $31,000 to each of about 60,000 German owners of diesel-powered VWs. The automaker paid billions of dollars in settlements for installing defeat devices on about 10 million vehicles sold in the U.S., Germany and other markets around the globe. Legal cases remain open against 31 other defendants, but former VW Chief Executive Officer Martin Winterkorn is not among them due to health concerns, MarketWatch reported. Winterkorn has denied any wrongdoing in the matter.

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