US charges VW Ex boss Winterkorn for conspiring to cover up VW diesel emissions cheating

Source: Reuters

The United States has filed criminal charges against former Volkswagen AG boss Martin Winterkorn, accusing him of conspiring to cover up the German automaker’s diesel emissions cheating, in a rare attempt to prosecute a CEO for company actions.

The indictment reopens the question of whether other senior Volkswagen (VW) executives knew about the scandal, which has dogged Europe’s biggest automaker for more than 2-1/2 years and led to a regulatory crackdown that is threatening thousands of jobs as customers increasingly shun diesel-powered cars.

The indictment, filed by the Department of Justice (DoJ) in secret in March, was unsealed in a U.S. district court on Thursday as VW (VOWG_p.DE) held its annual meeting in Berlin.

Winterkorn, 70, is charged with four felony counts, including conspiracy to defraud the United States, wire fraud and violating the Clean Air Act from at least May 2006 through November 2015, after VW admitted using illicit software that allowed diesel cars to emit excess pollution without detection.

Winterkorn resigned within days of the scandal becoming public in September 2015, but other senior executives who were on the company’s management board at the time continue to hold senior positions within the group.

Hans-Dieter Poetsch, who was finance chief, is now chairman of the supervisory board. Herbert Diess, now group CEO, joined the company on July 1 2015 as head of the VW brand, only weeks before authorities divulged its cheating on Sept. 18, 2015.

Rupert Stadler, who was head of the Audi brand in 2015, has been given additional responsibilities for group sales in a revamp announced by Diess last month. Bernd Osterloh, the company’s powerful labor chief who also sits on the VW supervisory board, is still in place.

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