Ex-Volkswagen Execs Sentenced for Dieselgate Fraud in Germany

Four former Volkswagen executives have been sentenced by a German court for their roles in the Dieselgate emissions scandal, nearly a decade after the company admitted to cheating on diesel emissions tests. The Braunschweig Regional Court handed down prison sentences of up to four and a half years after finding the individuals guilty of organized fraud for knowingly participating in the manipulation of emissions data affecting millions of vehicles.

Jens Hadler, former Head of Engine Development at Volkswagen, received the longest sentence: four and a half years in prison. Hanno Jelden, another senior executive, was sentenced to two years and seven months. Heinz-Jakob Neusser, a former member of the Volkswagen Group Board and Head of Technical Development, was given a one-year, three-month sentence, suspended on probation. A fourth manager, identified only as Thorsten D., received a suspended sentence of one year and 10 months.

All four were convicted of "organized fraud" for their involvement in systematically manipulating diesel vehicle emissions data, uncovered by US authorities in 2015. The scheme relied on software installed in vehicles to alter emissions readings during lab tests, making pollution levels appear lower than during real-world driving.

"The court found that the accused were aware of the manipulation of millions of emissions tests," stated Judge Christian Schütz during sentencing. He emphasized that "responsibility does not lie solely with the four individuals," acknowledging the involvement of numerous others in developing and deploying the software.

The defense sought three acquittals and one warning, but the court ruled that the four knowingly participated in the deception. The ruling is not yet final, as the defendants retain the right to appeal.

The case marks one of Germany’s most significant corporate fraud trials. It stems from the broader Dieselgate scandal, which erupted in 2015 when Volkswagen admitted to installing illegal software in over 11 million vehicles worldwide to cheat emissions tests. To date, the company has paid over €30 billion (US$32.5 billion) in fines, vehicle buybacks, and settlements globally.

The trial also revealed contrasting narratives between engineers and executives. Engineers claimed they warned their superiors about the legal risks of the emissions manipulation, while executives argued they were unaware their actions constituted fraud.

Former CEO Martin Winterkorn, one of the most prominent figures implicated in the scandal, was initially set to be tried alongside the four executives. However, his case was severed due to health issues and remains suspended. If convicted, Winterkorn could face up to 10 years in prison.

The first sentence related to Dieselgate was issued in June 2023, when Rupert Stadler, former CEO, Audi, received a suspended sentence and a EUR€1.1 million (US$1.19 million) fine after admitting his role in the scandal.

“Ten years after the discovery of the diesel scandal, we finally have the first sentences against Volkswagen executives, which are not even final. While the Braunschweig court recognizes the severity of the fraud, the government continues to bury its head in the sand,” said Jüergen Resch, Director, Environmental Group Deutsche Umwelthilfe (DUH).