Dieselgate: Former Volkswagen boss to pay $15.8M in damages – UPDATE
Volkswagen will be paid nearly $16 million in damages from its former boss, but the sum is equal to bonus payments he received.
UPDATE, 10 June 2021: Volkswagen Group has announced it has reached an agreement with former company boss, Prof Martin Winterkorn, for his alleged part in the 'Dieselgate' scandal.
As allegedly one of the key architects in the deception, Winterkorn will pay back €11.2 million (AU$17.6M) to Volkswagen – or roughly the same amount he received in bonuses as company boss.
Another senior executive at the German car giant, Prof Rupert Stadler, will hand over €4.1 million (AU$6.45M).
While it's estimated Volkswagen Group has paid around AU$46.5 billion in the aftermath of Dieselgate, the company will be receiving a payout of AU$424.5 million from its Directors and Officers Liability Insurance policy – covering just over 9 per cent of its fines, compensation, and vehicle buy-back programs globally.
The original story continues unchanged below.
1 June 2021: The ex-CEO of Volkswagen has agreed to pay €10 million (AU$15.8M) in damages to his former employer, according to news outlet Reuters citing Business Insider, due to his part in the 'Dieselgate' scandal.
Prof Martin Winterkorn was named by Volkswagen Group as being one of the key actors responsible for Dieselgate, alongside former Audi boss Prof Rupert Stadler, following a six-year investigation.
In 2015, authorities in the US discovered some diesel Volkswagen Group models used in-built software to cheat emissions tests. In real-world driving, the vehicles far exceeded legal limits, but showed favourable emissions outputs in lab conditions.
Volkswagen used the false data to advertise the vehicles in major markets as 'clean' diesels. It's estimated Volkswagen Group has paid around AU$46.5 billion in fines, compensations, and car buy-back programs.
In late March 2021, Volkswagen Group announced it would seek damages from Winterkorn.
However, the AU$15.8 million in damages reportedly agreed to by Winterkorn this week equates to roughly the same amount paid to him in bonuses when he was the boss of Volkswagen, according to an April 2019 report from news outlet Bloomberg.
In the wake of the Dieselgate saga, Volkswagen Group has been aggressively pursuing the development and production of electric vehicles, with the aim to transition away from traditional combustion engines.
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Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than 15 years. Ben was previously an interstate truck driver and completed his MBA in 2021. Ben began publishing car reviews and opinion pieces before being appointed Motoring Editor for an online lifestyle magazine. Working throughout the automotive industry in various marketing and communications roles over the past 15 years, he has written freelance on the topics of cars and watches for a number of publications. Ben is considered an expert in the area of classic car investment, which combines his love of finance, macroeconomics, and all things automotive. Ben lives in Melbourne and enjoys music, road trips, and the outdoors.
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