Ex-CEO agrees to 102 Cr. to pay
The Volkswagen Group is one of the leading automobile manufacturers in the international market and almost everyone with an interest in cars is aware of the Dieselgate scandal in which the Volkswagen Group was involved. The brand was subsequently fined for misconduct by several countries, including India. The brand had asked its ex-CEO Martin Winterkorn to pay € 1 billion for the scam, and reports are now surfacing suggesting that the ex-CEO of the Volkswagen Group was buying $ 14 million in compensation for his role in the Dieselgate- Scandal 2015 will pay.
According to the reports, Martin Winterkorn agreed to pay Volkswagen nearly $ 14 million, equivalent to roughly Rs. 102.5 billion, after failing to respond to an investigation. He wasn’t properly responding to signs that they were using a cheat device in their diesel emissions tests. The company recently published a report that said Winterkorn was involved in the development of the “cheat device”. The report also mentions that although he was not involved in the development, he “negligently breached his duty of care” by failing to promptly and comprehensively clarify the circumstances under which the illegal software was used.
Martin Winterkorn was CEO of Volkswagen from 2007 to 2015. He resigned within a week after the Dieselgate scandal hit the public. The investigation ran for several years and cost the manufacturer over $ 39 million in fines and other settlements. This has also damaged the reputation of Europe’s largest automaker. There are reports that Winternkorn denied through his lawyer that he had violated his duties of care. He also rejected the allegations made against him.
However, the ex-CEO has agreed to pay Volkswagen € 11.2 million, or $ 13.7 million. In addition to Martin Winterkorn, Volkswagen also asked the former Audi boss Rupert Stadler for compensation. Stadler is accused of not investigating whether Audi cars used the cheat devices. The former Audi boss has agreed to pay 36.6 billion rupees or $ 5 million in compensation. The manufacturer also announced that it will receive an additional € 270 million, or € 329 million, from an insurance policy that covers its directors and officers.
In 2015, West Virginia University developed a unique method for testing emissions in a vehicle. The new emissions tests were carried out while driving. Until then, this was done with the car stationary. Volkswagen Group vehicles were equipped with a cheat or shutdown device that recognizes when the car has been subjected to emissions tests. It had software that recognized various inputs from the vehicles and changed the mode. There was a test and a separate mode in the cars.
In test mode, as the name suggests, the car would meet all government emission standards. When the car is driven normally, the software switches it to a separate mode that plays with injection timing, fuel pressure, exhaust gas recirculation and the amount of AdBlue fluid sprayed. This mode provided more fuel efficiency and performance, but nitrogen oxide emissions in this mode were quite high. More than 11 million Volkswagen Group cars are affected by this scandal.