Nearly nine years have passed since the Dieselgate crisis in the United States emerged, when Volkswagen admitted that around nine million EA 189 diesel engines carried software designed to mask emissions during laboratory testing. This week the former VW chairman, Martin Winterkorn, appeared before the Braunschweig court, a city near the VW Group headquarters in Wolfsburg, as the legal process moved forward.
In his opening remarks, Winterkorn maintained that he did not know about the manipulation. German observers note that proving otherwise will be difficult due to the intricate decision networks within the automaker and the passage of time. Access to camera coverage in Germany is typically limited to early moments of proceedings, and prosecutors are seeking clear evidence to support the indictment against him. The case centers on whether there is concrete proof of knowledge and intent at the top levels of the company.
Rising costs and massive settlements
The trial aims to establish when and to what extent the leadership was aware of the manipulation, a move that shattered VW’s credibility and triggered a sharp drop in the stock price once the truth came to light. The emissions scandal first surfaced through American environmental authorities who detected the defeat device in diesel engines. In the years since, VW has faced roughly 32 billion euros in settlements and processing costs, primarily in the United States, with additional demands from Brussels to compensate affected customers.
Before Winterkorn, other senior executives from the group testified in Braunschweig. The most prominent was Rupert Stadler, former CEO of Audi, who appeared last year. The affair has become a media sensation in Germany, often described as a soap opera among the upper ranks of the automotive giant.
Impact across the group
The Dieselgate scandal touched not only the main brand but also Audi, Skoda, and Seat. The central aim of the manipulation was clear: to hide real emissions during lab tests from authorities, especially in the United States. The fraud extended to customers worldwide, according to the Braunschweig prosecutor, who has charged Winterkorn with large‑scale fraud, market manipulation, and false statements about the company’s responsibilities as a listed entity.
Delays in the trial
Prosecutors allege that the former VW chairman, who led the group from 2007, learned of the illegal manipulations by May 2014 at the latest. He is accused of remaining silent, effectively concealing the information and breaching the duties of a publicly traded company to disclose risks once they are known to leadership.
Winterkorn resigned in September 2015 after the scandal broke. He has consistently denied knowledge of the matter through his lawyers and reaffirmed this stance when called as a civil witness earlier this year. He acknowledged difficulties in the U S market but did not frame it as falsification or fraud.
The lengthy court timeline is partly due to a string of delays, some related to unrelated medical procedures and other matters. The current proceeding features 89 hearings scheduled in parallel with four other related cases, all connected to executives and engineers tied to the scandal.
Tough penalties and public reaction
The case against Rupert Stadler, the Audi chief, marked a high point in recent proceedings, receiving a sentence of 21 months in prison, suspended, plus a fine of 1.1 million euros. Other Audi and Porsche executives faced lighter penalties, including suspended prison terms and fines. German media have criticized the relatively lenient punishments given the billions in damages and the broad deception that affected customers across the globe.
VW’s tougher horizon
With Winterkorn at the center of attention, Dieselgate now stands at the pinnacle of accountability for the group. Current VW leadership has warned that plant closures or job cuts in Germany may occur as market conditions tighten and competition in Europe grows. Company leaders emphasized the need to adapt, while unions resist major changes. A long-standing job-protection agreement, set years ago, is now under renegotiation as VW faces ongoing market pressures and restructuring efforts.
As the company confronts these challenges, it remains under scrutiny for how it managed risk and communicated potential issues to investors. The case continues to unfold, illustrating how corporate governance and compliance responsibilities play out on the world stage. Sources familiar with the proceedings indicate more updates will follow as the 89 scheduled hearings proceed and the broader legal landscape surrounding the Dieselgate affair evolves.