Former VW boss pays around $ 12 million in damages for the Dieselgate scandal
Former Volkswagen boss Martin Winterkorn has agreed to pay around 10 million euros to the car manufacturer because the car manufacturer came to the conclusion that he had violated his duty of care. Winterkorn resigned as CEO on September 23, 2015, one week after the Dieselgate scandal became known.
In his resignation letter, he spoke of being shocked by the events and being “stunned” that such a major misconduct could take place within the Volkswagen Group. He took responsibility for all of these irregularities, and while he has been charged with wire fraud and conspiracy in the United States, he has not yet faced any of these charges.
Neither VW nor Winterkorn are currently making any statements. Nevertheless, according to Reuters, the two parties agreed on a settlement in which the former CEO would pay the aforementioned sum of money as compensation. The settlement could allegedly be signed this week.
In case some of you have forgotten everything that led up to this point, here’s a quick rundown of how VW shot itself in the foot while taking a massive wrecking ball from the entire auto industry and diesel technology in general.
In 2015, VW admitted using illegal software to run diesel engine tests in the United States, which eventually cost them more than 32 billion euros ($ 39 billion) in fines, legal fees, and recalls. Their legal troubles began in September of that year when the EPA got wind of what was happening on the automaker’s turbo-diesel direct injection engine during the laboratory diesel emissions tests (TDI) were concerned.
VW used software to manipulate these tests, which affected around 11 million cars worldwide (including 500,000 in the US) – model years 2009 to 2015. On the other hand, this incident led to a huge expansion of the electric car industry. If it hadn’t been for “Dieselgate”, you probably wouldn’t be driving a VW ID.3 or ID.4 now.