VW close to finalizing damages from managers diesel scandal

Volkswagen says it is close to finalizing the damages it is demanding from its former top executive and other senior managers following the diesel scandal.

Volkswagen says it is close to finalizing the damages it is demanding from its former top executive and other senior managers following the diesel scandal that engulfed Europe’s biggest car-making group about six years ago.

Volkswagen said on Sunday that the main details of compensation payments from former CEO Martin Winterkorn and other ex-senior managers due to the diesel scandal were now in place, after a supervisory board meeting.

However, negotiations are ongoing as some details are still being discussed, the company said – so the negotiations are not yet completely over.

In a scandal which broke over five years ago, Volkswagen was found guilty of systematically deceiving its customers with an engine that could cheat emissions tests to appear less polluting than it really was.

VW is seeking compensation from several former executives for their role in the scandal.

The company’s supervisory board commissioned a specialist law firm to carry out an internal investigation into the responsibilities at the time. Based on the results, VW decided to take recourse against the former managers involved.

VW’s supervisory board “decided on the main terms of the settlements,” during its meeting on Saturday, a spokesperson told dpa, adding that the agreements were expected to be finalized in the coming days.

Talks with insurers and lawyers entered their final phase in recent days and concrete sums can follow in the week ahead, the spokesperson said.

Reports suggest the sum in Winterkorn’s case could be around 10 million euros (12 million dollars), although a higher sum is likely to be covered by liability insurance.

There has recently been discussion of up to 300 million euros. However, the sums involved could still change.

Rupert Stadler, Ulrich Hackenberg, Wolfgang Hatz and Stefan Knirsch, who were also senior managers, are also to provide financial compensation to VW.

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