Former Audi boss Rupert Stadler got off with a suspended prison sentence and a fine after his involvement in the so-called ‘Dieselgate’ scandal. The Munich Regional Court had sentenced Stadler to 21 months of suspended imprisonment and a fine of €1,1 million. Stadler has now appealed against the sentence, just like its two fellow convicted managers, Wolfgang Hartz and Giovanni Pamio.

Rupert Stadler was the first former Volkswagen board member to admit in court that he was partly responsible for the company’s emissions fraud. Initially, he denied every involvement, as he was only informed about the fraud in July 2016, when the USA EPA discovered the ‘Dieselgate’ emissions scandal in 2015.

Two executives of Volkswagen America were imprisoned in the US due to the investigations. Finally, the Volkswagen Group has already paid more than €30 billion in fines and compensations, most in the US.

Munich Court Judge Stefan Weichert accepted the declaration of Stadler that he was only fully informed later on. Still, he also pointed out in his verdict that the top management didn’t take “the necessary measures to ensure that the commercialization of the fraud was stopped”.

Two other convictions

The two other top managers appearing before the Munich Court were also convicted. In exchange for their confessions of the fraud, former Porsche technical director Wolfgang Hatz and Audi engineer Giovanni Pamio were sentenced to 21 months of suspended imprisonment and a fine of €400 000 and €50 000, respectively.

The process has taken several years, with 170 days of trial and 190 witnesses heard, resulting in 1 400 separate documents to be read and judged. Some prosecutors had objected to a plea agreement.

Pleading guilty to get a much lighter sentence is now heavily criticized in Germany. “A gigantic economic scandal, millions of clients cheated all over the world, billions of fines and compensations to be paid by the company, and there’s only one manager until now held responsible and getting away with a very light sentence,” complained the Süddeutsche Zeitung bitterly.

In 2017, the annual remuneration (without bonuses) of Rupert Stadler amounted to  €5 million, according to VW’s annual reports. In 2021, Stadler closed an amicable agreement with his former employer, renouncing some bonuses and paying €4,1 million in compensation to the Group.

Appeal

Despite their (late) admittance of the facts to avoid real imprisonment, the three managers are now going into appeal against their convictions. The Munich Court prosecutor has also appealed against the verdict because he asked for 3,2 years of effective imprisonment against Wolfgang Hatz.

The Munich Court has now a certain time to motivate its judgment further and communicate this to the parties concerned. The highest German Court will treat the appeal, the BGH or Bundesgerichtshof. It will investigate if everything has been according to the law and if the rights of the defendants were respected.

Hostile atmosphere

Four other top managers are still involved in a trial before the Brunswick Court (near VW’s Wolfsburg headquarters), with sentences to be expected during 2024. The main defendant, former VW Group CEO Martin Winterkorn, at the company’s helm in 2015, will not appear before the court for ‘medical reasons’.

Law cases are still running against Volkswagen all over the world, but Dieselgate has also led to investigations in other matters and against other car manufacturers. Moreover, the confidence built between the car industry and the authorities was almost destroyed, leading to more stringent rules (especially regarding emissions) and a latent war between the key players.