The Fall of Volkswagen CEO Martin Winterkorn: An Analysis

The scandal surrounding former Volkswagen CEO Martin Winterkorn has been one of the most significant in the history of the German auto industry. The “dieselgate” saga came to light in 2015 when VW admitted to installing software to manipulate emissions levels in millions of vehicles worldwide. Now, nine years after the scandal first broke, Winterkorn is finally set to go on trial for his role in the deception.

Winterkorn faces several charges, including fraud for the use of defeat devices that made cars appear less polluting in lab tests. If convicted, he could face up to 10 years in jail. In addition to fraud, Winterkorn is accused of conspiracy to commit fraud and giving false testimony to a German parliamentary committee. He is also charged with market manipulation for failing to inform the capital market in a timely manner about the emissions-rigging software.

Winterkorn was meant to stand trial in 2021 alongside four other VW executives, but due to his poor health, the proceedings against him were postponed. However, a regional court in Braunschweig has announced that the trial will finally go ahead this month. Concerns have been raised about Winterkorn’s health, with reports of him undergoing surgery in mid-June. The trial, scheduled to run through September 2025, consists of 89 hearings.

One of the key allegations against Winterkorn is that buyers of VW vehicles were deceived about their characteristics due to the use of defeat devices. The fraud is said to relate to around nine million vehicles sold in Europe and the United States, resulting in financial losses running into hundreds of millions of euros for the buyers. Winterkorn, who was VW CEO from 2007 to 2015, denies knowledge of the defeat devices prior to September 2015.

The “dieselgate” scandal has already cost Volkswagen around 30 billion euros in fines, legal costs, and compensation to car owners, primarily in the United States. While Winterkorn has agreed to pay VW 11 million euros as part of a settlement, the company itself is not a party to the trial. The highest-ranking former executive to have been convicted in the scandal thus far is ex-Audi CEO Rupert Stadler, who received a suspended sentence and a fine for fraud by negligence.

As Winterkorn’s trial gets underway, the world will be watching to see how justice is served in one of the biggest post-war industrial scandals in Germany. The outcome of the trial will not only have implications for Winterkorn himself but also for the reputation of Volkswagen and the broader auto industry. It serves as a cautionary tale about the consequences of corporate misconduct and the importance of accountability at the highest levels of leadership.