VW gets $351M in diesel agreement with former pros

BERLIN — Volkswagen Team stated it has reached settlement with former CEO Martin Winterkorn and 3 different former best executives over reimbursement for his or her involvement within the automaker’s diesel-emissions scandal.

The agreement manner VW receives 288 million euros ($351 million) in reimbursement associated with the scandal that has price the corporate greater than 32 billion euros in fines, refits and criminal prices.

In a statement on Wednesday, VW stated:

  • Winterkorn has agreed to pay 11.2 million euros of reimbursement
  • Rupert Stadler, former CEO of VW’s Audi department, agreed to pay 4.1 million euros
  • Wolfgang Hatz, VW Team’s former best engineer, pays 1.5 million euros
  • Audi’s former construction head, Stefan Knirsch, pays 1 million euros

The automaker stated it is going to additionally obtain 270 million euros from its administrators’ and officials’ legal responsibility (D&O) insurances.

VW stated that former Audi and VW govt Ulrich Hackenberg was once now not ready to achieve an settlement. Arrangements might be made for criminal motion in opposition to Hackenburg, it stated.

Hackenberg left the automaker in 2015 after being suspended within the wake of the scandal and was once changed by way of Knirsch. As investigations persevered into the diesel scandal, Knirsch hastily left in September 2016.

Hackenberg was once the architect of VW Group’s MQB platform, which underpins lots of the automaker’s inner combustion engine vehicles.

VW stated its supervisory board concluded that Winterkorn breached his tasks of care by way of failing to “comprehensively and promptly” explain the instances at the back of using illegal tool purposes in diesel engines bought within the U.S. between 2009 and 2015.

Winterkorn “additionally didn’t make sure that the questions requested by way of the U.S. government on this context have been responded in truth, totally and at once,” the remark added.

Stadler breached his tasks of care by way of failing, within the length beginning Sept. 21 2016, to make sure that 3.0-liter and four.2-liter diesel engines advanced by way of Audi and put in in VW, Audi and Porsche cars have been investigated with reference to illegal tool serve as, VW stated.

VW’s announcement comes Winterkorn was charged with giving false testimony about the emissions scandal to German parliament. The prosecution alleges he misled lawmakers in 2017 when giving testimony that he didn’t learn about emissions dishonest previous than VW formally admitted.

VW stated in past due March it will declare damages from Winterkorn and Stadler for breaches of responsibility of care underneath inventory company legislation. The legislation company Gleiss Lutz performed a overview of legal responsibility claims on behalf of the automaker.

The reimbursement bills nonetheless should be authorized by way of VW Team’s annual assembly on July 22.

The bills constitute the very best in their sort in Germany. Over a decade in the past, ex-Siemens CEO Heinrich von Pierer paid 5 million euros in damages to his former employer.

Reuters and Bloomberg contributed to this record