Four Former Volkswagen Executives Convicted in Germany for Role in Dieselgate Scandal

Nearly a decade after the diesel-emission scandal erupted, a German court has handed down the first criminal convictions against senior Volkswagen executives involved in the long-running emissions manipulation scheme that shook the global automotive industry. The Braunschweig Regional Court on Monday sentenced four former managers for their roles in the fraudulent deployment of defeat devices used to cheat emissions tests, affecting millions of vehicles and causing billions of euros in damages.

Senior Engineers Sentenced Over Emissions Fraud

Jens Hadler, who headed diesel-engine development at Volkswagen AG from 2007 to 2011, received the longest sentence — four and a half years in prison. Hadler was found guilty of aggravated fraud linked to the sale of over two million vehicles fitted with illegal emissions software. The court concluded that Hadler, given his senior position, had both the authority and opportunity to prevent the continued use of defeat devices but failed to act.

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Hanno Jelden, a former top engineer, was sentenced to two years and seven months for his involvement in the sale of nearly three million manipulated vehicles. The court highlighted Jelden’s participation in a pivotal 2006 meeting where the decision to proceed with emissions cheating was allegedly made.

Former Volkswagen engine development chief Heinz-Jakob Neusser received a suspended sentence of one year and three months. The court acknowledged that Neusser became aware of the scheme only in 2013, several years after the software’s implementation. Nonetheless, his failure to intervene after learning of the deception was deemed a significant offence, contributing to an estimated €27 million (₹243 crore) in damages.

A fourth defendant, referred to only as Thorsten D. due to German privacy laws, was handed a suspended sentence of one year and ten months. The court cited his early cooperation with U.S. authorities and admission of the use of defeat devices as mitigating factors. He was also the first to confess VW’s wrongdoing in the emissions fraud case, playing a critical role in uncovering the extent of the scandal.

Judgment Highlights Deceptive Practices and Leadership Failures

In his ruling, presiding judge Christian Schütz said it was “crystal clear” that the vehicles in question had been deliberately fitted with software that reduced emissions only during laboratory testing, while emitting far higher levels of nitrogen oxides during normal road use. These defeat devices allowed Volkswagen to market its diesel cars as environmentally friendly while evading environmental regulations in both Europe and the United States.

“The authorities certifying the cars weren’t told that the emissions were much higher in real drive,” Schütz said. The court ruled that the men acted with the intent to deceive regulators and consumers, contributing to a total of €2.1 billion (₹18,900 crore) in damages to drivers.

While the court recognised that many others within Volkswagen were involved, the convicted individuals were deemed to have held leadership roles and participated knowingly in a prolonged conspiracy. The sentences were reduced slightly due to the unusually long duration of the trial and the overall prosecution process, which began in 2019.

Wider Legal Fallout and Continuing Proceedings

The Braunschweig trial, which began in 2021 after delays caused by the COVID-19 pandemic, spanned 175 hearing days. The convictions mark a significant milestone in the criminal proceedings against Volkswagen's leadership in Germany, coming after the company settled a criminal probe in 2018 by paying €1 billion (₹9,000 crore) to German authorities.

Volkswagen has so far paid over €33 billion (₹2.97 lakh crore) globally in fines, settlements, and buybacks related to the dieselgate scandal. In Germany, it still faces several civil lawsuits, including a €9 billion (₹81,000 crore) investor class action. The convicted managers are among dozens who were initially under investigation; many other lower-level employees reached settlements or had their cases dropped.

Among the executives originally charged was former CEO Martin Winterkorn, whose trial has been repeatedly postponed due to health issues. Winterkorn resigned just days after U.S. authorities disclosed the emissions violations in 2015. He continues to deny wrongdoing.

Other prominent figures have faced legal consequences to varying degrees. Rupert Stadler, former Audi CEO, received a suspended sentence in 2023, pending appeal. Former CEO Herbert Diess and VW chairman Hans Dieter Pötsch settled a market manipulation case in 2020, paying €4.5 million (₹40.5 crore) in fines.

Jelden and Hadler are also among several former executives indicted in the United States. However, Germany does not extradite its nationals to non-EU countries, allowing them to avoid prosecution in U.S. courts.

Next Phase of Dieselgate Trials Looms

Despite the conclusion of this high-profile trial, legal proceedings related to dieselgate are far from over. At least 31 other individuals remain indicted in Braunschweig, with the next set of hearings scheduled to begin in November. The German judiciary, though slower to deliver criminal convictions than its U.S. counterpart, is continuing to pursue accountability for what remains one of the automotive industry’s most damaging scandals.