Ex-manager in the diesel scandal 288 million euros in damages for VW
As of: 06/09/2021 4:07 p.m.
The diesel scandal is getting expensive for former VW managers: ex-boss Winterkorn and other former top people have to pay 288 million euros in compensation to Volkswagen – and still expect lawsuits. Former CEO Martin Winterkorn and three other ex-top managers are paying record compensation to Volkswagen because of the diesel scandal. In the final agreement, an amount of just under 288 million euros had been agreed, the company said. However, the majority of the sum is covered by specialized liability insurance.
270 million euros from insurance companies
The former CEO Winterkorn personally pays 11.2 million euros. Ex-Audi boss and VW board member Rupert Stadler is to transfer 4.1 million euros himself. With him and Winterkorn it is about the violation of stock corporation law due diligence. The former Porsche board member Wolfgang Hatz also contributes 1.5 million euros, the former Audi manager Stefan Knirsch 1 million euros. The managers’ insurers generate 270 million euros. In addition to the lawyers of the former managers, more than 30 insurers were involved in the negotiations.
No agreement with Hackenberg
Both the personal payments and the insured coverage would result in “by far the highest sum that such a consortium has ever put on the table in Germany,” said negotiators. VW had also demanded compensation from ex-head of development Ulrich Hackenberg. However, he was not ready to reach an agreement, which is why legal steps should now be prepared against him.
General assembly has to decide
Volkswagen decided in March to hold Winterkorn, Stadler and other former executives in the group financially responsible for breaches of stock corporation law during the diesel scandal. The payments, which have now been agreed with the ex-managers, could put a provisional end in the years of processing individual responsibilities in the emissions affair. VW announced that the supervisory board had already approved the agreement on Saturday. The final decision still has to be made by the general meeting, which will be convened for July 22nd.
Charge of false testimony
However, the VW group and the ex-managers have agreed on the compensation outside of the civil or criminal litigation. However, further questions have to be clarified before the courts themselves in ongoing or upcoming proceedings. For example, the Berlin public prosecutor’s office brought charges against Winterkorn for making a false statement in the Bundestag’s investigative committee into the emissions affair. The authority announced that he should have “deliberately given false information” to the question at which point in time he was informed about the use of software to manipulate the emission values. Winterkorn also has to answer before the Regional Court of Braunschweig – because of the diesel scandal itself. There it is a charge of commercial and gang fraud. Winterkorn has already rejected the allegation.
So far, the scandal has cost VW 32 billion euros
The diesel scandal caught up with Volkswagen and other German car manufacturers in autumn 2015. VW admitted relatively early on that it had installed software in certain diesel engines that only reduced nitrogen oxide emissions on the test bench, but not in road traffic. There have been several trials around the world. Consumer advocates also dealt with the origin of the scandal. As a result, VW had to pay compensation and court costs of around 32 billion euros.