The outcome of the rigged engine scandal is becoming clearer. Criminal proceedings against the two top executives of Volkswagen ended Tuesday, May 19 in Germany, in exchange for payment of nine million euros.

Dismissed in September 2019 for manipulation of the financial markets as part of the "dieselgate", Herbert Diess, CEO of Volkswagen since April 2018, and the chairman of the supervisory board, Hans Dieter Pötsch, will finally avoid a trial after an agreement with the prosecutor from Brunswick (north).

Volkswagen will take over payment of 4.5 million euros per defendant, because it did not identify "breaches of homework towards the company" on the part of the two leaders, accused of having informed too late Investors in diesel car fraud.

Fake vehicles

This is just one of the many procedures linked to this sprawling scandal. It erupted in September 2015, when Volkswagen admitted to having rigged 11 million vehicles with software capable of making them appear less polluting during laboratory tests than on the roads, a revelation that had caused the share price of Volkswagen to fall Stock Exchange.

For the group, this criminal investigation against its current leaders was one of the most delicate: it was in particular to determine when the board had been informed of the cheat and the risks that ensued.

"During the referral in September 2019 as today, legal counsel and representatives of the company believe that the charges against Mr. Pötsch and Mr. Diess are unfounded," the group said in a statement. "It is in the company's interest to end these procedures."

30 billion euros

The boss of the time, Martin Winterkorn, had also been dismissed last September for "manipulation of the stock market price", in addition to a previous dismissal for "aggravated fraud". He remains under the threat of a trial, his case not being covered by the agreement announced Tuesday.

Hans Dieter Pötsch is still under investigation by the Stuttgart prosecutor's office for manipulation of the stock market; the former head of the Audi brand, Rupert Stadler, is also awaiting trial.

Investors are still claiming compensation in the context of a group procedure opened in September 2018. But the end of the criminal investigation strengthens the group's defense in this case.

The "dieselgate" has already cost the German manufacturer more than 30 billion euros, which has since tried to improve its image by betting on the electric car.

With AFP

The France 24 week summary invites you to come back to the news that marked the week

I subscribe

Take international news everywhere with you! Download the France 24 app

google-play-badge_FR