Photo: Volkswagen
Volkswagen’s former CEO, Prof. Dr. Martin Winterkorn, is being investigated by German authorities. Instead of an inquiry concerning the cheating scheme that led to the Dieselgate situation, VW’s former boss is being investigated for waiting too long to publicize the cheat.
The latest inquiry comes at the request of BaFin, Germany’s financial regulator, and they want to know if the former CEO of Europe’s largest automaker waited too long to confirm the cheating scheme.
As Automotive News reports, internal documents have revealed that the deception plan was known to Winterkorn for over a year before it was publicly acknowledged. The investigation will also include another former Volkswagen executive, but his name has not been revealed.
In other words, former Volkswagen AG leading managers are being suspected of hiding the cheating situation for an extended period to benefit from higher stock values. The same report announces that Hans Dieter Poetsch, current Volkswagen chairperson and the finance chief during the timeframe on which investigators are focusing, is not being probed in this inquiry.
Volkswagen representatives have declined to comment the matter before studying the statement of the prosecutor. However, as Automotive News notes, Winterkorn is facing a penalty of up to five years in prison if the charge goes through. The second executive, yet unnamed, is also in front of a similar charge.
Both Winterkorn and his co-defendant could avoid prison time due to age, and pay a massive fine instead. They are accused of market manipulation, as the Dieselgate scandal affected stock price and their refusal to disclose the situation led to a longer period with a higher market value.
Prof. Dr. Martin Winterkorn was the CEO of the Volkswagen Group when the corporation admitted to its intricate cheating scheme, last September. By October 2015, Winterkorn had resigned from the company, and his other functions within Volkswagen have also been left by the German executive.
As Automotive News reports, internal documents have revealed that the deception plan was known to Winterkorn for over a year before it was publicly acknowledged. The investigation will also include another former Volkswagen executive, but his name has not been revealed.
In other words, former Volkswagen AG leading managers are being suspected of hiding the cheating situation for an extended period to benefit from higher stock values. The same report announces that Hans Dieter Poetsch, current Volkswagen chairperson and the finance chief during the timeframe on which investigators are focusing, is not being probed in this inquiry.
Volkswagen representatives have declined to comment the matter before studying the statement of the prosecutor. However, as Automotive News notes, Winterkorn is facing a penalty of up to five years in prison if the charge goes through. The second executive, yet unnamed, is also in front of a similar charge.
Both Winterkorn and his co-defendant could avoid prison time due to age, and pay a massive fine instead. They are accused of market manipulation, as the Dieselgate scandal affected stock price and their refusal to disclose the situation led to a longer period with a higher market value.
Prof. Dr. Martin Winterkorn was the CEO of the Volkswagen Group when the corporation admitted to its intricate cheating scheme, last September. By October 2015, Winterkorn had resigned from the company, and his other functions within Volkswagen have also been left by the German executive.
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