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Four former Volkswagen managers have been convicted of fraud for their roles in the so-called Dieselgate scandal, which erupted when U.S. regulators discovered that the company had installed software to cheat emissions tests on millions of VW, Audi, and Porsche vehicles worldwide.
The court sent the former head of diesel engine development behind bars for four years and six months, and the former head of powertrain electronics to two years and seven months. Two others — Volkswagen’s former development director and a former department head — received suspended sentences, according to Der Spiegel and Deutsche Welle reports from the Braunschweig courtroom.
The verdict follows nearly four years of proceedings and adds to the mounting legal troubles for Volkswagen. Prosecutors had asked for prison terms of two to four years, while the defense argued the men were scapegoats. Appeals remain possible.
After being caught cheating in 2015, the company admitted to installing software in its diesel engines that activated emissions controls only during laboratory testing, allowing the vehicles to meet U.S. standards while in real-world driving, the vehicles emitted up to 40 times more pollutants.
The fallout forced CEO Martin Winterkorn to resign, although he denied wrongdoing. U.S. authorities issued an arrest warrant for Winterkorn in 2018, but Germany does not extradite its nationals. His trial in Germany was paused in 2021 due to health issues, but he remains a key figure under investigation.
Meanwhile, the arrest of Audi’s then-CEO Rupert Stadler in 2018 marked a dramatic shift, as German prosecutors expanded their probe into current executives. Stadler was accused of continuing to sell cars with illegal software even after the scandal broke.
Across the Atlantic, two former VW engineers — Oliver Schmidt and James Robert Liang — are already serving prison sentences in the U.S. Schmidt, who once led VW’s environmental office in the U.S., was sentenced to seven years after initially denying guilt but later reaching a plea deal. Liang received 40 months after cooperating with prosecutors.
Currently, German authorities are investigating up to 40 executives and engineers across Volkswagen, Audi, and Porsche, with parallel cases against Daimler (Mercedes) and BMW under way.
OCCRP previously reported on Volkswagen’s 2017 U.S. guilty plea and multibillion-dollar settlement.
The Dieselgate saga has so far cost VW an estimated €33 billion ($37.5 billion) and the legal and financial fallout is far from over.
Thousands of European customers continue to press for compensation, while investigators on both sides of the Atlantic keep pushing for accountability at the highest levels.
