The regional court in Braunschweig has bundled three different charges, all in connection with cheating software installed in diesel engines Volkswagen stand. It is eagerly awaited whether the accused ex-VW boss Martin Winterkorn will appear before the Economic Criminal Chamber after the 77-year-old’s health problems recently became known.
Winterkorn was VW boss from 2007 to 2015 and stepped down as part of the emissions scandal back. After investigations by US authorities, the company had to admit that it had installed an illegal defeat device in eleven million vehicles worldwide. Nitrogen oxide emissions were reduced on the test bench and the prescribed limit values were adhered to. However, in real operation on the road, this was not the case and the vehicles should not have been registered.
Winterkorn was scheduled to appear in court in autumn 2021 together with four other former executives of the group. The process at that time had been prepared for years and had already been postponed several times due to the corona pandemic. Shortly before it began, however, Winterkorn’s trial was cut off and postponed for health reasons. At that time, the court deemed him unfit to stand trial due to an operation. The process began without Winterkorn and is still ongoing – dates are scheduled until January 2025.
Allegation of gang fraud
A few weeks ago, media reports said that Winterkorn was again in poor health and weakened, and there was talk of a medical emergency and another operation. However, the court stuck to the start of the trial and only sent a separate announcement about the proceedings this week.
Winterkorn must initially answer for allegations of commercial and gang fraud. The court alleged that buyers of certain vehicles were “deceived” and “suffered financial loss” as a result. This involves nine million vehicles and damage amounting to several hundred million euros. However, Winterkorn is not accused of involvement in the crime for the entire period of the crime, which is said to extend from 2006 to 2015.
Secondly, there is the accusation of unsworn false testimony before a Bundestag investigative committee in 2017. There, Winterkorn said that he first found out about the inadmissible defeat devices in September 2015. There is an accusation that this could have happened earlier in 2015.
Finally, there is the accusation of market manipulation. Winterkorn is said to have “deliberately failed to inform the capital market in a timely manner” “despite knowledge” of the installation of illegal defeat devices and expected financial risks from claims for damages. Volkswagen only published an ad hoc announcement, i.e. a mandatory notification to investors, on September 22, 2015, days after the scandal was exposed.
Essentially, the issue in Braunschweig will be exactly when Winterkorn knew what and how he dealt with this knowledge. The court emphasizes that the proceedings are running independently of the trial against the four other former managers. Other judges would be appointed and the responsible chamber would “collect all the evidence necessary to make a decision itself”.
The Volkswagen Group said the process was being monitored. “However, we do not assume that any relevant new findings will arise from this,” said a spokesman, pointing out at the same time that the company was not involved in the proceedings. VW also expects “that the courts will confirm that the company has properly fulfilled its disclosure obligations.”
The process could take several years. If convicted, Winterkorn could face several years in prison.