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Volkswagen's Former CEO Charged In Germany Over Diesel Rigging (bloomberg.com)

An anonymous reader quotes a report from Bloomberg: Former Volkswagen AG head Martin Winterkorn was charged with serious fraud in Germany for his role in the diesel-rigging scandal that rocked the carmaker and cost it about $33 billion. The former chief executive officer was accused alongside four other managers of equipping vehicles sold to customers in Europe and the U.S. with a so-called defeat device, authorities in Braunschweig said Monday in an emailed statement. Fraud charges carry a sentence of as long as 10 years, and prosecutors also want to seize bonuses paid to the five men, which ranged from 300,000 euros for some managers to about 11 million euros for Winterkorn.

Allegations that VW wrongfully withheld information about the emission software used in its diesel cars have loomed over the company since the scandal first broke in 2015. The crisis involved as many as 11 million diesel cars worldwide, and shattered the Wolfsburg-based company's reputation. Winterkorn's lawyer Felix Doerr said prosecutors haven't given him full access to their files. Unless all information is disclosed to him, he said, he can't comment on the charges.
Winterkorn was also charged with breach of trust for failing to swiftly tell authorities about the defeat devices used "to seemingly meet tightened emission standards for diesel cars and preserve market shares for VW or even increase them for the benefit of the company and the accused themselves," prosecutors said.

62 comments

  1. Finally by gweihir · · Score: 2

    That probably means the evidence is extremely solid or they would have swept it under the carpet. Greed, stupidity and no integrity at all.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
    1. Re:Finally by Anonymous Coward · · Score: 0

      TheMerkel will save "her" Autoindustry, they are about as sacred as the weapons-manufactors are to the US...

    2. Re:Finally by Anonymous Coward · · Score: 0

      Yes they are charging the wrong person. According to the Friedman doctrine an officer of a corporation only works for the shareholders. As such it is the shareholders who are responsible and who should be on trial. It is the shareholder's will that the CEO was executing.

    3. Re:Finally by KixWooder · · Score: 1

      The Comapny will survive, the (Ex) CEOs freedom will not.

      --
      I hate fat people.
    4. Re:Finally by Tablizer · · Score: 3, Interesting

      At first they blamed it all on the engineers. Engineers rarely intentionally rig things that way without management pressure.

      I've been pressured to rig IT stuff via management, so I see this from a very personal perspective.

    5. Re:Finally by JaredOfEuropa · · Score: 1

      That’s not what the “Friedman Doctrine” means. Even if you as a CEO work for only the shareholders’ interests, that in no way absolves you of responsibility for your own actions. The shareholders would share the responsibility only if they had actively called or voted for unlawful actions.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    6. Re:Finally by K.+S.+Kyosuke · · Score: 1

      As such it is the shareholders who are responsible and who should be on trial. It is the shareholder's will that the CEO was executing.

      That sounds a bit too much like "I was only following orders" to be true.

      --
      Ezekiel 23:20
    7. Re:Finally by JaredOfEuropa · · Score: 1

      Shareholders do not issue orders.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    8. Re:Finally by Tablizer · · Score: 1

      What if the shareholders don't know what's going on, or at least there is no evidence they knew what was going on? Cluelessness is rarely a felony, for good or bad.

    9. Re:Finally by Anonymous Coward · · Score: 0

      Yes they are charging the wrong person. According to the Friedman doctrine an officer of a corporation only works for the shareholders. As such it is the shareholders who are responsible and who should be on trial. It is the shareholder's will that the CEO was executing.

      It's sure as fuck not the cheeto-sucking trustafarian pothead shareholder who's responsible for running the company legally and ethically. That is what they expect and demand from those who are accountable.

      Perhaps you need to remember the difference between an investor and a criminal. You can probably make 100x bigger returns backing the next Pablo Escobar, but common sense says you shouldn't.

    10. Re:Finally by HornWumpus · · Score: 1

      So lockup the German state of Hannover and the Porsche family?

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    11. Re:Finally by Anonymous Coward · · Score: 0

      Yes, they do. They have one outstanding order - maximize profit. If they want, they can issue an order to limit profit or keep it zero/negative.

    12. Re:Finally by Anonymous Coward · · Score: 1

      You clearly have never been to a shareholders meeting. Often, maximizing value is much, much more important to the shareholders than maximizing profit. Pension funds, in particular, demand stability in dividends, and don't give a flying fuck about short term profits. Stability, in fact, is more important to the pension funds than increasing dividends. Carl Icann style corporate raiders are very happy to shed profit in order to get an immediate cash payout. The day traders, who are most impacted by P&L statements, rarely know what shares they own in adequate time to go to the shareholder meetings at all. The quants don't give a fuck at all; they just want their algorithms to give them a thousandth of a percent on the volume.

      In other words, your progressive bullshit talking point is just bullshit. Grow up.

    13. Re:Finally by Anonymous Coward · · Score: 0

      Only if the CEO told the shareholders what he was doing.

      Spoiler: he didn't.

    14. Re:Finally by Anonymous Coward · · Score: 0

      You obviously don't know anything about how business are actually run, lol, and the fact that you consider "maximizing profit" to be a "progressive" focus just shows what an out of touch head-in-ass nazi incel you are, rather than a business whiz. Get educated so when you tell people to "grow up" it's not just an ironic self-own.

    15. Re:Finally by Anonymous Coward · · Score: 0

      Did they also claim there's also "50$ worth of steel" in their cars, like some head-in-ass faggot (you) did? You're a singular dumbass, faggot.

    16. Re:Finally by gweihir · · Score: 1

      Winterkorn is an engineer. He is in fact an engine-specialists with a reputation to always want to look at all the details himself. You know, somebody that takes one look at the performance numbers of the affected engines and immediately sees that something cannot be right.

      --
      Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
    17. Re:Finally by Tablizer · · Score: 1

      He was functioning as a manager when the transgressions happened, no?

      I'm not saying engineers are more moral, only that typically the pro/con risks of that kind of fiddling on one's own volition doesn't favor doing it when employed as an engineer.

      If somebody's rank is "engineer", the benefits of that kind of cheating done without management requesting it are small or negative because the risk of getting caught (by co.) is fairly large and management will typically NOT give you bonuses/kudos for doing something they didn't ask for. Managers want you to do what they ask for and only what they ask for. Yes, I know there are exceptions, but I'm talking general.

    18. Re:Finally by Anonymous Coward · · Score: 0

      At first they blamed it all on the engineers. Engineers rarely intentionally rig things that way without management pressure.

      I've been pressured to rig IT stuff via management, so I see this from a very personal perspective.

      I've been pressured to always make demo's of stuff as fast as possible, as long as it sort of looks good, since most demo's don't make it to production. Of course, if there is interest in production of the thing demoed then your going to again be under pressure as fast as possible, and now have shoddy work to start with. Still, one does what they can. Passing along work that was done as fast as possible initially, when your told it would be reworked as necessary if it makes it into production is, well, doing your job. I tend to make management slightly annoyed since I try to make code that is a bit better, even though it takes longer, but well, I just tend to think if you let your code be too crappy, and don't keep up with most of the technical debt, then you just shoot yourself in the foot later when you want to reuse it.

    19. Re:Finally by gweihir · · Score: 1

      He was CEO. I am just pointing out it is exceptionally likely he still looked at engine tech personally and his expertise would have told him something was wrong.

      No argument on your points, I agree.

      --
      Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
    20. Re: Finally by Anonymous Coward · · Score: 0

      VW's shareholders always issued orders to employ as many people in Lower Saxony as possible. Profit did not become a shareholder concern until the US shakedown after dieselgate temporarily reduced tax and dividend income.

    21. Re: Finally by Anonymous Coward · · Score: 0

      She has no choice: Germany's car manufacturing industry is one of the most important pillars of German economy and with its banks in disarray, a blow to that industry would cause a major crisis for Germany. Being that Germany is the engine of all the EU's economy, it would mean utter misery, ruin, unemployment all over Europe with dire consequences. Europeans are not used to hardships since decades. Hundreds of millions of angry, desperate people could be a horrifying sight indeed.

    22. Re:Finally by Anonymous Coward · · Score: 0

      I'm sure management will 'learn' from this by stepping up their psycho manipulative games and further decreasing the control the engineers have on work process. Gods are never wrong.

      There is no oversight. Only thing that seems to work is when 'shit hits the fan and damage is too great to quietly sweep under the rug'.

      Hmm it there was a way to document management behavior and have a clear written records of decision-> implementation ...
      "this and this was done. it was ordered by that and that management person". And no 'being clever' descriptions here. Write in plain, simple concise language - buzzwords are out of the question. Maybe something like this
      https://law.justia.com/codes/connecticut/2005/title42/sec42-152.html

    23. Re:Finally by dunkelfalke · · Score: 1

      Hannover hasn't been a state for over 70 years.
      You mean Lower Saxonia.

      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    24. Re:Finally by houghi · · Score: 1

      Even if there was an engineer who came up with the idea all by himself, the responsability is still with the CxO. That is his job, being responsible for shit and stuff.

      And if the engineer somehow would have been able to let nobody know what he was doing, the CxO is STILL responsible for the product that comes out of the factory. The "Wir haben es nicht gewusst." (We did not know.) defence might not work that well in Germany.

      --
      Don't fight for your country, if your country does not fight for you.
    25. Re:Finally by Anonymous Coward · · Score: 0

      Engineer is not a "function", it's a profession. It doesn't matter what his actually currently work is, he will always be an engineer. At least as long as his exam stands up to scrutiny.

    26. Re:Finally by Tablizer · · Score: 1

      There seems to be a miscommunication somewhere. I tried to clarify and it still didn't work.

    27. Re:Finally by Anonymous Coward · · Score: 0

      Clarification does not solve being wrong.

    28. Re:Finally by Tablizer · · Score: 1

      Poorly stated, maybe, but not "wrong" in terms of what I intended to say. (At least nobody presented any info contradicting what I intended to say. They debunked their head's own version.)

  2. In Nurnburg? by Anonymous Coward · · Score: 0

    Trials were held? The hangings are when?

  3. Yeah this'll really bring him to justice by Anonymous Coward · · Score: 0

    Expect the trial to take 5 years and end with the jury being dismissed cos they can't agree a verdict.

    1. Re: Yeah this'll really bring him to justice by Anonymous Coward · · Score: 0

      Wrong legal system. Germany has no juries.

    2. Re:Yeah this'll really bring him to justice by _merlin · · Score: 1

      Germany has a federal law system, not a common law system. You can be called to serve as a judge, not to serve in a jury. As a judge, you're required to pass judgements according to the law (precedents do not create law). If there's no applicable law, you can exercise some discretion in a judgement, but you're required to justify it.

  4. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    And slashdot will not post anything about it... unless maybe we can tie this to global warming somehow?

  5. ... or it's an election campaign by Anonymous Coward · · Score: 0

    There aren't any political motivated prosecutions trying to swing a vote. That would never happen.

  6. Re:French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    What has Notre Dame burning got to do with the VW "rogue engineer" being revealed as Old Man Winterkorn, the CEO?

  7. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 1

    Trump has already boasted that his vast knowledge of firefighting leads him to conclude the French aren't raking their forests properly.

  8. Re:French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    ask the question backwards, and you will have your answer.

  9. A surprise, but a welcome one by Anonymous Coward · · Score: 0

    A CEO may actually be punished? Let's wait and see.

  10. Official story? by Anonymous Coward · · Score: 1

    I recall a few years ago when the VW scandal first came out that VW kept claiming that it was due to "rogue engineers". I don't know whether this former CEO was one of the VW people who made the claim that the emissions rigging was just due to "rogue engineers". But whatever happened to that story? Has VW since then officially admitted to lying to the public on top of its emissions rigging, which *was not* just due to "rogue engineers"?

    1. Re:Official story? by HornWumpus · · Score: 2

      As a rogue and an Engineer, I think this was hatespeach.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:Official story? by thegarbz · · Score: 1

      I recall a few years ago when the VW scandal first came out that VW kept claiming that it was due to "rogue engineers".

      As someone who works in Germany, there's no such thing as a rogue engineer. Getting a frigging pencil from the storage cupboard requires multiple levels of independent signoff, paper forms, and a data entry clerk to keep the system in check.

    3. Re:Official story? by Anonymous Coward · · Score: 0

      Are you dual- or multi-classing?

  11. Re:French cathedral Notre Dame is burning by godrik · · Score: 1, Interesting

    I know it is completely out of topic. But yeah it is terrible.
    I grew up in Paris, I have been bummed out all afternoon.

  12. and professional engineer certification will fix f by Joe_Dragon · · Score: 1

    and professional engineer certification will fix that so they can TELL PHB TO FUCK OFF MY certification is on the line

  13. Remember the Nuernberg trials? by Anonymous Coward · · Score: 0

    Yeah, I'm German, and we all do. "I was only following orders." didn't work back then, and it doesn't work now.

    Every German judge probably knows half the Nürnberg trials by heart.

    I still agree though, and raise you to "Why not both?"
    Everybody who knew it, and kept working there, and didn't speak up, in fact. CEO, engineer, janitor if he knew.
    And we should have a police that protects you (e.g. from being fired) if you do so, and proudly proclaims so.

    Idealism only is idealism, and not reality, because some people do not WANT it.

  14. No problem. Now your job is. by Anonymous Coward · · Score: 0

    On the line, that is.

    No, you won't be just fired. That would be illegal in Germany.
    You will be ... "caught" ... doing things harmful to the company.
    And here are there two warnings you previously already "received".
    This shall be the third one. Goodbye.

    Don't say it doesn't happen.
    It happened to a head of department in a Bertelsmann subsidiary that I worked at. One that uses more flour than a bakery.

  15. Mmmhhh, peach! by Anonymous Coward · · Score: 0

    So sweet and juicy and warm and soft and nicely tasting and dilatable and prolapsable!

    1. Re:Mmmhhh, peach! by HornWumpus · · Score: 2

      But enough about your mom.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:Mmmhhh, peach! by Anonymous Coward · · Score: 0

      You only have dads, faggot.

  16. Investor an a for-"profit" corporation? by Anonymous Coward · · Score: 0

    Profit ... the part of the income you did not work for. The fraudulent part. The stolen / robbed part.

    Yeah, no. Legalizing crime does not make them "not" criminals.

    The theft can be measured. It's called inflation. And it's what effectively lowers your salary.

  17. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    The message is clear. God didn't want a renovation of his house; he wanted an overhaul!

  18. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    This is a site for nerds. We do not care about christians. We hate them. We hate everybody that is not us. They ostracized us, they made our lives a living hell. They condemned us to ridicule, loneliness and involuntary celibacy. They took away from us the girls we were in love with. They beat us up. They humiliated us. Why should we not hate them?

  19. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    We have to fight their wars, might as well fight their fires also.

  20. Diesel rigging? by Applehu+Akbar · · Score: 1

    Is that the web of ropes and tackle that Germans are using now to attack sails to their newest generation of environmentally friendly semis? The diesel engine would still kick in if a truck becomes becalmed on the autobahn.

  21. Still Waiting... by Anonymous Coward · · Score: 0

    When are the bank executives going to be held responsible for the 2007-2009 financial meltdown? When are the Equifax executives going to face trial for insider trading?

  22. It's been pretty obvious it's Winterkorn's fault by Solandri · · Score: 1

    I own one of the affected VWs and have been keeping tabs on this in owners forums. The inside scoop came out within just a few months of the scandal breaking. Basically Winterkorn didn't want to pay licensing fees to Mercedes for its DEF technology. So he instructed his engineers to get the TDI engines to meet emissions standards without DEF while maintaining power output, or else. When the engineers determined it was impossible, they did the only thing they could to keep their jobs - they cheated.

    The VW engineers actually came remarkably close to succeeding. Here are the NOx emissions for the TDI vehicles before and after the fix. The pre-fix NOx emissions for the 2015 TDI engines are actually compliant with EPA limits (0.2 g/mi), and just barely above CARB's limit (0.04 g/mi). (The pre-2015 TDIs remain above CARB's limit after the fix. CARB covers this in their FAQ.)

  23. Good by Anonymous Coward · · Score: 0

    But when will those responsible for the emissions cheating at all the other car makers who were caught be charged? It cannot be that only the company that admitted gets all the blame. Justice must be served.

  24. Company growth for shareholders by devlp0 · · Score: 1

    German engineering advancements peeked a decade or so ago making it harder for these companies to generate growth for their shareholders, corner cutting and in this case, out right lying are quick ways of generating growth. It's a sad state for these German companies - Mercedes were recently found to be using false leather for their car seats - marketed as real leather of course - and had to make a payout to a guy in the UK who had his seats tested after purchase! Luxury ...

    --
    >/dev/null 2>&1
  25. Re: French cathedral Notre Dame is burning by Anonymous Coward · · Score: 0

    If you have to fight their wars, which isn't particularly true anyway, there's nothing unfair about that; after all they fought yours.

  26. Still charging the wrong guy by etudiant · · Score: 1

    It is obvious that this cheating was approved by the then chairman and family head, Ferdinand Piech, who ran the company until 2015.
    Piech was an engineer and engine specialist, famous for his detailed involvement in new designs.