VW diesel scandal: Verdict on Monday – Do the defendants have to go to prison?

Braunschweig. "Manipulation and Volkswagen, that must never happen again" – with this statement, CEO Martin Winterkorn appeared on camera on September 22, 2015. "Mr. Volkswagen" apologized, admitted misconduct, and promised: "We will clear this up."

One day later, Winterkorn resigned, and the comprehensive investigation into who was responsible for the manipulation continues to this day. A massive fraud trial against four former managers and engineers—but without Winterkorn in the dock—is now nearing completion. The verdict is scheduled to be announced on Monday (May 26).

In April 2019, the Braunschweig public prosecutor's office announced its indictment against former VW CEO Winterkorn and four other former executives at the automaker. Prosecutors accused them of a "multiple criminal offenses," but primarily of a particularly serious case of fraud.

After several coronavirus-related delays, the complex proceedings began in Braunschweig's town hall under pandemic restrictions, with masks and social distancing. In front of the world press, the commercial criminal division of the regional court began its attempt to clarify the alleged personal responsibility of VW executives for one of Germany's largest economic scandals ever.

Resigned in September 2015: Former Volkswagen CEO Martin Winterkorn. (Archive photo)

Source: Moritz Frankenberg/dpa

But even before the start, it was clear that Winterkorn would be missing from the dock. His complex had been separated for health reasons. Most participants sharply criticized the absence of the once highest-paid German corporate executive. Many observers spoke of a start without the actual central figure.

Without Winterkorn as a key figure, attention for the trial quickly waned. The group of journalists and other interested parties quickly thinned out, until eventually only the core of those involved remained. The proceedings moved to regular courtrooms at the regional court, where they delved into the technical details with virtually no media coverage.

The public prosecutor's office believes the engineers and managers were deeply involved in the development and use of the manipulation software in millions of vehicles. To clarify the question of who knew what and when about the secret program, the four defendants hurled accusations at their then-top boss, Winterkorn, and each other.

It's one person's word against another's. Engineers who allegedly proposed the defeat device say something like: "We raised concerns and warned of consequences." Superiors counter: "We discussed problems, but never illegal actions or even fraud." This situation remained essentially unchanged during 174 days of hearings with approximately 150 witnesses.

The origins of one of Germany's biggest industrial scandals go back a long way. In the mid-2000s, VW wanted to catch up with its competitors in the US with diesel cars. Investigators believe that problems complying with emissions standards led to a series of cover-ups surrounding the software trick.

The scandal came to light in September 2015, when the US Environmental Protection Agency (EPA) reported manipulation of emissions tests for diesel cars. Shortly before, VW had admitted to false test results. A few days later, CEO Winterkorn resigned, and the automaker slid into one of the biggest crises in the company's history.

The consequences were quite severe, including prison sentences in the US. VW paid a billion-dollar fine to the state of Lower Saxony and compensation for around a quarter of a million diesel customers. An investor lawsuit against the Volkswagen Group and its parent company Porsche SE has been going on since 2018, seeking compensation for investors who suffered billions in share price losses following the Dieselgate scandal.

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In the first criminal verdict in Germany, former Audi CEO Rupert Stadler was sentenced in Munich to one year and nine months' probation and ordered to pay €1.1 million for fraud. Initially, a plea agreement was reached, but the defense subsequently filed a surprise appeal. The verdict is not final.

In Braunschweig, the surprise on the faces of many participants in the trial was clearly visible when the prosecutors agreed to their sentencing demands a few days ago. The prosecution considered that a suspended sentence was insufficient for three of the defendants. The prosecutors requested between three and four years in prison for them. The defense, however, argued for three acquittals and one warning.

In emotional closing statements, the defendants emphasized how exhausting and tiring they found the nearly four-year trial. The men facing imprisonment made it clear that they were stunned by the proposed sentence, ten years after the scandal first came to light. They also described the pleas for the other defendants as, among other things, "irritating and frightening."

While the prosecution considers the four men convicted of fraud, they vehemently defend themselves and see themselves as pawns. At the end of the trial, they also reiterated their surprise that investigations against other victims had been dropped. This suggests that some of the accused were able to evade responsibility by making favorable statements to investigators.

The verdict will now be handed down on Monday, the 175th day of the trial.

The legal investigation, which, according to the latest company information, cost VW alone 33 billion euros, is not over even after the verdict. In Braunschweig, in addition to the first trial and the case against Winterkorn, four further criminal proceedings from the complex are still pending against a total of 31 defendants, a spokesperson for the regional court said.

According to the public prosecutor's office, the proceedings against nine defendants were dropped in return for fines. Proceedings against another 47 originally accused in the entire case were dropped during the investigation, in return for fines and with the approval of the regional court.

And Winterkorn? After years of no major public appearances, he was questioned by the Braunschweig Higher Regional Court as a witness in the investor trial in early 2024, denying responsibility for the diesel scandal. "I consider these allegations to be inaccurate," Winterkorn said.

A few months later, the now 78-year-old testified in court as the defendant. He again denied the charges against him and felt his successful career had been damaged by the diesel scandal. However, an accident involving Winterkorn interrupted the trial after just a few days. Whether and when the proceedings can be resumed remains entirely unclear.

RND/dpa