Volkswagen's Former CEO Finally Charged Over Diesel Cheating Scandal

by Matt Posky

Published: May 3rd, 2018

volkswagen s former ceo finally charged over diesel cheating scandal

Former Volkswagen CEO Martin Winterkorn has been charged by U.S. prosecutors with conspiracy and wire fraud, according to an indictment that was unsealed in a Michigan federal court on Thursday. For those of you who have been following the Dieselgate scandal from the beginning, this has been a long time coming.

Winterkorn has been at the epicenter of the emissions-cheating issue since before VW’s earliest admissions and was swiftly removed from his post as the automotive group’s chief executive in 2015. He also had a major falling out with ex-supervisory board chairman Ferdinand Piëch after being confronted on the emissions issue during the Geneva Motor Show.

The two had previously held a very close relationship but a power struggle within the organization appeared to have been brewing for quite some time, making the scandal an important turning point. Piëch became vaguely accusatory of Winterkorn in the aftermath and eventually cut ties with the company and, by extension, his family. All the while Winterkorn was under investigation in both the United States and Germany.

According to Bloomberg, the charges against him were filed covertly in Detroit on March 14th and were unsealed on Thursday. In addition to the aforementioned charge of conspiracy to defraud the United States, Winterkorn has also been faulted with violating the Clean Air Act.

From Bloomberg:

The Winterkorn indictment focuses on the July 27, 2015, meeting in Wolfsburg, where Winterkorn and several other senior leaders were briefed about the diesel irregularities and how U.S. regulators were threatening to hold up certifying 2016 models. Winterkorn at that meeting “approved the continued concealment of the cheating software from U.S. regulators,” according to the indictment.

The wire fraud relates to August 2015 emails that Winterkorn was copied on regarding VW’s attempts to deceive U.S. regulators through Oliver Schmidt, VW’s compliance liaison, according to prosecutors. Schmidt pleaded guilty in 2017 and was sentenced to seven years in prison.

“The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company,” Attorney General Jeff Sessions said in a statement. “These are serious allegations, and we will prosecute this case to the fullest extent of the law.”

It’s unlikely he’ll ever be tried within the United States, however. Schmidt, who claimed to have been misused by the company, was only caught and sentenced because he was in Florida. Winterkorn (pictured below, standing suspiciously close to Yoko Ono) will undoubtedly stay in Europe to avoid facing the courts and Germany is unlikely to extradite him. While he’s still under investigation within his home country, no formal charges have been made.

[Images: Volkswagen AG]

#CrimeAndPunishment #DieselEmissionsScandal #Dieselgate #Emissions #FerdinandPiech #HotLegalAction #MartinWinterkorn #Volkswagen #VolkswagenAg #VolkswagenGroup #VW #YokoOno

Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

More by Matt Posky

Comments

Join the conversation

3 of 12 comments

Joeaverage on May 04, 2018

With Trump and Pruitt rolling back some of the regs on clean air, I'm surprised that the EPA still cares.

Like Reply
- Brettc on May 04, 2018
  
  I was surprised as well, especially that Jeff Sessions is still pursuing this. I thought the investigation was done.
  
  Like
05lgt on May 04, 2018

Extraordinary Rendition Now! https://www.youtube.com/watch?v=WFBoIda0y5A (Winterkorn gets a ride in a Mercedes)

Like Reply

Recent Comments

Fred It just makes me question GM's management. Do they save rent money? What about the cost of the move? Don't forget they have to change addresses on their forms. New phone numbers? Lost hours?
SilverHawk It's amazing how the domestic manufacturers have made themselves irrelevant in the minds of American consumers. Someday, they'll teach this level of brand disassociation in marketing classes as an example of what "not to do". Our auto interests once revolved around these brands. Now, nobody cares, and nobody should care. Where did I put the keys to my Studebaker?
El scotto Will it get GM one mile closer to the Gates of Hades? This is a company that told their life long employees not to sell their stock until the day of bankruptcy.
28-Cars-Later I'm curious, is the Maverick in "EV mode" when its towing?"There's still car-like handling -- no punishment because you're driving a truck." That's because its not a truck, its akin to the earlier Ranchero - a literal car-truck hybrid now with an available gasoline hybrid drivetrain (that's actually hilarious and awesome, hybrid-hybrid FTW).
El scotto Will Ford ever build enough of them? When I was car shopping, I couldn't find a Maverick with all the options I wanted. Yeah, I know1st World Problems at their finest. So lemme see, I have to order it; wait, and then the dealer will talk about my trade in. Hard Pass.Had I wanted to deal with even more slimy behavior the Kia dealer was across the street.