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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.

28 of 62 comments (clear)

  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 KixWooder · · Score: 1

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

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      I hate fat people.
    2. 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.

    3. 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.

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      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    4. 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
    5. Re:Finally by JaredOfEuropa · · Score: 1

      Shareholders do not issue orders.

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      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    6. 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.

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

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

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      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    8. 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.

    9. 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.
    10. 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.

    11. 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.
    12. 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
    13. 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.
    14. Re:Finally by Tablizer · · Score: 1

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

    15. 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. 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.

  3. 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.

  4. 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.

  5. 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

  6. 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'
  7. 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.

  8. 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.

  9. 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.)

  10. 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 ...

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    >/dev/null 2>&1
  11. 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.