A German court has convicted four former Volkswagen managers of fraud in connection with the “Dieselgate” scandal that saw the automaker pay out more than $33 billion in fines and other costs for rigging diesel emissions data. Two of the VW employees face prison time. More from Headlight.News.
A “defeat device” was used to temporarily bring dirty engines – like this diesel from the VW Golf TDI – into compliance with U.S. emissions standards,
The wheels of justice move slowly in Germany, it seems. Nearly a decade after Volkswagen acknowledged rigging diesel emissions tests a German court has convicted four former managers of fraud. Two of the one-time VW officials will now face prison time for their role in rigging engine control systems to falsely pass emissions testing.
Those going to prison include the former head of diesel development. But the man many believe initiated the scandal continues to avoid prosecution, proceedings against former Volkswagen CEO Martin Winterkorn suspended due to health problems.
The scandal eventually cost Volkswagen more than $31 billion in fines, compensation and other costs, much of it paid in the United States to settle state and federal charges.
Dieselgate
It subsequently turned out VW’s sibling Audi brand also rigged emissions tests.
By the 1990s, diesels had all but vanished from the U.S. market. Volkswagen brought oil-burners back with the 2009 launch of the TDI family, promising they would be not only fuel-efficient but quick, smooth and clean. That clicked with buyers, VW’s line-up, at their peak, accounting for nearly a quarter of the German automaker’s U.S. sales.
Then the bottom fell out when researchers discovered that the automaker had installed a so-called “defeat device” in as many as 11 million vehicles sold worldwide. They were capable of detecting when TDI models were undergoing emissions testing and adjusting their engine settings to sharply reduce production of smog-causing oxides of nitrogen and other harmful gasses.
Initially, the Environmental Protection Agency said 482,000 vehicles solid in the U.S., equipped with Volkswagen’s 2.0-liter diesel, would be recalled because they could emit up to 40 times the permissible level of noxious exhaust gases when not being tested. The number eventually grew and ultimately included Audi diesels sold in the U.S. Several other Volkswagen Group brands, such as Skoda and SEAT, sold overseas were also caught up in the scandal.
Former VW Group CEO Martin Winterkorn has so far avoided prosecution due to poor health.
Prosecution
Volkswagen subsequently pulled its diesels out of the U.S. market, though it was allowed to sell a small number of vehicles once their engines were modified.
U.S. prosecutors leveled charges against eight former VW managers and executives – though most escaped trial by returning to Germany. Two officials did go to trial in the States, includings James Liang, then 63, who was given a three-year prison sentence.
The case generated charges in other markets. In Germany, former Audi chief Rupert Stadler was given a 21-month suspended sentence and a 1.1 billion euro – or $1.25 billion – fine. His appeal is ongoing. Germany has only now concluded the cases against four other VW officials. Two have received sentences, including the former head of diesel development who faces 4.5 years in prison. The head of drivetrain electronics was given a 2-year 7-month sentence. Two others received suspended sentences.
Nearly three dozen others still face ongoing prosecution. Among those Germany has targeted: Martin Winterkorn, the carmaker’s former. Known as a micro-manager, many observers have questioned how the diesel emissions manipulation could have occurred without his knowledge. Winterkorn’s case has been suspended due to his poor health.
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Death of the diesel
Only a handful of models sold in the U.S. are now offered with diesels – including the heavy-duty GM pickups using the Duramax turbo-diesel.
Volkswagen eventually spent more than $33 billion in fines, compensation to owners and other costs related to the scandal. Amon other things, it agreed to invest $2 billon in the U.S. to both promote battery-electric vehicles and set up a nationwide network of EV chargers under the Electrify America brand.
The automaker was able to modify and sell off a small number of vehicles it has already shipped to the U.S. but, in 2016, said it would end sales of the TDI models in the Stats.
Several other diesel manufacturers, including Mercedes-Benz and what was then Fiat Chrysler Automobiles also were accused of rigging diesel test. They eventually paid fines.
While a handful of products continue to offer diesel options in the U.S., such as a version of the Ford F-250 pickup — industry data show overall sales fell to 26-year low in 2024, with experts forecasting a continuing decline in demand going forward.
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