VW CEO Knew About Dieselgate Fraud Early On, German Prosecutors Claim

Former VW boss Martin Winterkorn was told about the emissions defeat devices fitted to the company’s cars going before the scandal came to light, but failed to intervene, a German court has been told.

In the first related trial to take place since the Dieselgate scandal broke in 2015, four ex-VW Group managers are accused of authorizing the fitment of defeat devices which disguised the fact that up to 9 million VW cars sold in Europe and the U.S. emitted 15-35 times the permissible nitrogen oxides limit.

But the men claim Winterkorn knew very well what was going on long before the scandal broke. “He decided against disclosure and hoped to be able to continue to conceal the legal violations,” prosecutors told the court.

The former CEO, now 74, was originally charged with the four managers currently standing trial, Automotive News Europe reports, but his trial was postponed for health reasons.

Related: VW To Sell A Stake In Electrify America, Looking For $1 Billion

Winterkorn, who has denied allegations against him, was charged with giving false testimony to the German parliament in June. But now the German Press Agency says a defense attorney at the trial of the four men told the court that “it remains unclear whether there will be a trial against Mr. Winterkorn at all”.

The lawyer for Thorsten D., one of the four managers who are in court, claimed his client shouldn’t be there as he disclosed the deceit to U.S. authorities despite being told by VW to keep quiet and has since cooperated with German and U.S. agencies.

Automotive News says the emissions scandal has costs the carmaker €30 billion ($35.3 billion) including payments to U.S. authorities, and is still facing more litigation including a €9 billion class-action lawsuit.

All of which makes the €288 million ($339 m) compensation deal VW negotiated with Winterkorn, other VW chiefs and insurers look like a drop in the ocean.

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