Dieselgate is the biggest (and dirtiest) scandal to ever hit the global automotive industry. And now in a rather unexpected development, the United States Justice Department has disclosed that it has filed criminal charges against Volkswagen's ex-CEO Martin Winterkorn. The charges have been filed accusing him of a conspiracy to cover up the Volkswagen Group's emissions cheating between 2006 and 2015 when it was finally uncovered. Martin Winterkorn had resigned days after news of the Scandal broke in September 2015. The Justice Department has charged him with four felony counts, including conspiracy to defraud the United States, wire fraud and violating the Clean Air Act.
According to Reuters, the United States indictment of Martin Winterkorn is largely a symbolic one. Although Winterkorn is already under investigation in Germany over the Dieselgate scandal, it is unlikely that as a German citizen he will ever actually be extradited to the United States to face trial. The charging and prosecution of CEOs in major corporate scandal or crisis is rare, a precedent set by the United States federal government after the 2007 financial crisis. In comparison, no individuals of the Toyota Motor Corporation were charged in connection to the unintended acceleration issues and similarly, no individuals at General Motors were charged in connection to the ignition switch defect that also claimed the lives of a few drivers.
In 2017, the Volkswagen Group settled criminal charges with the United States Justice Department over the Dieselgate scandal for a sum of $4.3 billion. The Volkswagen group will also be spending close to $25 billion in the United States alone to address class action lawsuits and claims from owners, environmental regulators and dealers. Volkswagen has also been forced to buy back over 5 lakh running vehicles from owners, which have now been stored in lots around the country.
