Former Volkswagen boss Martin Winterkorn and three other former executives agreed to pay € 288 million in damages resulting from the company’s diesel emissions scandal, according to court documents. Former Volkswagen CEO Martin Winterkorn will pay 11.2 million euros in personal compensation for his shortcomings.
Agreements were also reached with other former Volkswagen executives. Under the agreements, Rupert Stadler, former head of the Audi division, will pay 4.1 million euros, former Audi executive Stefan Knirsch 1 million euros and former Porsche executive Wolfgang Hatz 1.5 million euros. The German carmaker will then receive 270 million euros from liability insurance against losses due to the actions of directors and officials.
The company said Winterkorn “violated his duty of care” as chief executive officer, based on an extensive investigation conducted by a law firm hired by the company.
The United States Environmental Protection Agency has accused Volkswagen of using software that allows cars to pass emissions tests. Winterkorn, who denied the wrongdoing, resigned a few days after the EPA violation notice on September 18, 2015. Volkswagen apologized and paid more than 31 billion euros in fines, recall costs and compensation to the car owners.
Investigations found that as of July 27, 2015, Winterkorn has failed to “fully and timely clarify the circumstances behind the use of illegal software features” in 2.0-liter diesel engines sold in the United States from 2009 to 2015. The German carmaker said Winterkorn failed to ensure the company answered questions from US regulators “truthfully, completely and without delay.”