Verdict in the Diesel Emissions Scandal: If Technical Staff Faces Accountability, Corporate Managers Should Too - Arrests in Diesel Scandal: If Engineers are Implicated, Superiors Should Face Charges as Well
Volkswagen's Diesel Scandal: Justifying Jail Time for Managers
- Author: Lutz Meier
- Estimated Reading Time: 4 Minutes
The Diesel scandal at Volkswagen Corporation, initially labeled as a mere "issue," was officially deemed "organized and commercial fraud" by the Braunschweig Regional Court. After years of legal proceedings and meticulous investigations, the clarified terminology underscores the gravity of the actions within the once-untarnished German company.
The aim of punishments in a rule of law is primarily to deter future transgressions. The judgment from Braunschweig is hoped to prevent Volkswagen, the automotive industry, or any other economic sector from repeating such unethical conduct. Punishments serve to make those responsible aware of the consequences of breaking essential safety regulations for humans and the environment.
Consequently, the judges in Braunschweig handed significant prison sentences without probation to two former high-ranking Volkswagen engineers. Their sentences highlight the severity of the crime, far surpassing a mere "issue." Jens Hadler, former head of diesel engine development, received four and a half years, while Hanno Jelden, who led the powertrain department, was sentenced to two years and seven months.
A Bittersweet Resolution
Despite the accelerating legal process, the decision raises a lingering sour taste, and a sense of resolved legal peace is yet to be achieved. Only the responsible engineers were sentenced to prison terms, while corporate managers received suspended sentences or are still awaiting their verdicts. The trial for then-CEO of Volkswagen, Martin Winterkorn, was separated due to health issues, postponing a definitive verdict for him.
The logic of the sentence appears to follow a rank-based system: higher-ranking individuals receive lighter sentences. However, it is essential for the justice system's purifying effect to be meaningful if the responsibility of corporate managers is also reflected in stringent verdicts. Managers who initiate, tolerate, or direct rule violations should share the same accountability as those who implement them.
Closer Examination of Winterkorn's Involvement
The ongoing Diesel scandal gains further intrigue as mechanical engineer Jens Hadler, one of the recently convicted, stated in an extensive interrogation that he disputed with Winterkorn over prohibited software related to exhaust cleaning as early as 2007. This software allowed the system to pass certification tests but was switched off during normal operation. According to Hadler's statement, Winterkorn insisted on using the technology, despite his understanding of the rule violations. Hadler claimed to have warned against it but ultimately assisted in implementing Winterkorn's demands.
The judiciary seems to find Hadler's statements credible, as they form part of the indictment against Winterkorn. Beyond this conviction, the court is yet to deliver verdicts against Winterkorn and Rupert Stadler, former Audi CEO and Winterkorn confidant. Winterkorn's trial, if his health permits, and Stadler's case will offer a decisive outcome on the handling of the multi-billion dollar offense.
The Path to Justice
The verdict from Brunswick marks a significant step in the legal process but is only one piece of the puzzle. For genuine justice to be served, the management's responsibility for the illegal activities must be more clearly addressed. The focus should not be on retribution but on ensuring that those at the helm, not just those in the engine room, face consequences for their actions.
- The Commission is being asked to submit a proposal for a directive on the protection of the environment, considering the gravity of the Volkswagen Diesel Scandal, which involved organized and commercial fraud in the automotive industry.
- Punishments for corporate criminals, such as those in the finance, investing, and business sectors, should reflect their rank and responsibilities, as demonstrated in the General-News and Crime-and-Justice cases, including the Diesel Scandal at Volkswagen.
- As the trial for former CEO Martin Winterkorn of Volkswagen Corporation is postponed, the investigation into his involvement in the Diesel Scandal continues, as more evidence of his knowledge and permission for the use of prohibited software emerges, hinting at a wider reach of this crime within the company.
