German court convicts 4 ex-Volkswagen managers of fraud in emissions scandal

Key Points

• German court convicts four former Volkswagen managers of fraud, sentencing the ex-head of diesel development to 4½ years and the head of drive train electronics to 2 years 7 months, while two others received suspended terms.
• The scandal began in September 2015 when the U.S. EPA discovered rigged diesel-engine software, prompting Volkswagen to pay over €33 billion in fines and compensation.
• Former CEO Martin Winterkorn has had proceedings suspended due to health issues and has denied any wrongdoing, with no trial date set.
• Further proceedings are open against 31 other suspects in Germany over their alleged roles in the emissions manipulation.

FRANKFURT, Germany (AP) — A German court on Monday convicted four former Volkswagen managers of fraud and gave two of them prison sentences for their part in the manipulation of emissions controls, almost a decade after the scandal erupted over the company's rigging of diesel-engine vehicles.

The former head of diesel development was sentenced to four and a half years in prison, and the head of drive train electronics to two years and seven months by the court in Braunschweig, German news agency dpa reported. Two others received suspended sentences of 15 months and 10 months.

The scandal began in September 2015 when the U.S. Environmental Protection Agency issued a notice of violation. saying that the company had rigged engine control software that let the cars pass emissions tests while they emitted far more pollution in actual driving.

The company has paid more than $33 billion in fines and compensation to vehicle owners. Two VW managers received prison sentence in the U.S. The former head of the company's Audi division, Rupert Stadler, was given a suspended sentence of 21 months and a fine of 1.1 million euros ($1.25 million). The sentence is still subject to appeal.

Missing from the trial, which lasted almost four years, was former CEO Martin Winterkorn. Proceedings against him have been suspended because of health issues, and it's not clear when he might go on trial. Winterkorn has denied wrongdoing.

Further proceedings are open against 31 other suspects in Germany.