Wednesday 9 June 2021 2:01 pm

Former Volkswagen and Audi bosses to pay millions in damages over 'dieselgate'

The former bosses of Volkswagen and Audi will pay millions in compensation related to their roles in the “dieselgate scandal”, the German car giant revealed today.

The payments will form part of a €288m (£248.5m) deal, of which €270m will come from directors’ and officers’ liability (D&O) insurances.

Volkswagen first said that it would seek damages from Professor Martin Winterkorn and Audi chair Rupert Stadler back in March.

After an investigation, the carmaker said that both had breached their “duty of care” under stock corporation law.

Winterkorn will pay €11.2m, while Stadler will pay €4.1m, the firm said.

Former Audi board member Stefan Knirsch agreed to settle for €1m , and ex-Porsche AG board member Wolfgang Hatz for €1.5m, Volkswagen added.

The decision to fine Winterkorn came as prosecutors today charged him with giving false testimony to the German parliament over the scandal.

“In his testimony, the accused falsely claimed to have been informed of the defeat devices only in September 2015,” Berlin prosecutors said in a statement.

“According to the indictment, he had since May 2015 been aware that the engine control software of some VW vehicles had been equipped with a function to manipulate the exhaust values in testing,” the prosecutors added.

The scandal, which arose when the carmaker admitted using using illegal software to rig US diesel engine tests, has cost the German carmaker more than €32bn in fines, refits and legal costs.

Before the Open: Get the jump on the markets with our early morning newsletter