A Volkswagen board member was convicted in the Dieselgate scandal that's costing $38 billion and counting

The 2015 emissions scandal rocked the German auto manufacturer

PublishedJune 27, 2023

Former Audi head Rupert Stadler received the verdict in a Munich courthouse.

Photo: Pool (Reuters)

Rupert Stadler—the former head of Audi—became the first Volkswagen board member to be sentenced for fraud related to the 2015 emissions scandal that rocked the German auto manufacturer known as “Dieselgate.” Stadler was fined €1.1 million ($1.2 million) and received a suspended sentence of one year and nine months on Tuesday (June 27).

Specifically, Stadler was accused of failing to stop car sales despite being aware the car’s software was deceiving emissions standards tests. Stadler initially denied the accusations, but later admitted that he had been negligent as part of a deal with the prosecution to avoid prison time.

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Several court cases against other members of the Volkswagen board are ongoing. The high-profile criminal fraud case against former CEO Martin Winterkorn was delayed because of health issues last year.

The decision comes a day after Germany’s highest federal court ruled that Volkswagen and Mercedes-Benz must pay compensation to consumers after illegally using emissions-controlling devices in cars. The court said that the manufacturers could be liable for between 5% and 15% of the initial cost of the vehicle.

The judge also ruled that the companies should be held liable, even if they had unintentionally installed an illegal device. This changes the court’s earlier opinion and is in line with a ruling by the European Court of Justice that determined consumers were owed compensation, even in instances where the damage was caused by negligence.