Former VW boss finally goes on trial in Germany over 'Dieselgate'

Almost exactly nine years after the diesel emissions scandal at Volkswagen came to light, the auto giant's former boss Martin Winterkorn finally went on trial in German court.

Winterkorn, 77, faces criminal charges over his alleged role in the scheme by Volkswagen to use illegal software to deceive environmental regulators in the United States over emissions from the company's diesel engines.

Once Germany's highest-paid business executive, Winterkorn stepped down in the wake of the scandal but denied any personal culpability in the scheme. His trial has been repeatedly delayed by health concerns.

Prosecutors alleged in court on Tuesday that Winterkorn knew details about the illegal software by May 2014 at the latest, earlier than the executive has acknowledged.

"Dieselgate" was uncovered in September 2015 through investigations by US environmental authorities and scientists.

They found that the carmaker had manipulated emissions levels with special software. These so-called "defeat devices" meant that the cars complied with nitrogen oxide limits during test conditions, but not on the road.

Prosecutors said Winterkorn's failure to do anything about the illegal activity after allegedly learning about it resulted in the sale of at least 65,000 manipulated vehicles in the US.

The scandal cost Volkswagen more than €32 billion ($35.3 billion) in fines and settlements alone. The affair plunged VW into the worst crisis in the company's history and severely damaged its reputation.

"Our client firmly rejects the allegations made against him," Winterkorn's lawyer, Felix Dörr, said on his behalf on Tuesday.

Dörr contended that it's clear Winterkorn "did not deceive" and "did not harm anyone."

Winterkorn is expected to make a statement himself to the court on Wednesday.

Winterkorn is alleged to have deceived VW buyers about the quality of the cars and, in the crucial days of September 2015, deliberately failed to inform the capital market in good time about the risks of penalty payments. In 2017, he then allegedly gave false testimony to the Bundestag's committee of enquiry.

He faces charges including commercial fraud, market manipulation and making a false statement. The reading of the lengthy, complex indictment took several hours on Tuesday.

The Braunschweig Regional Court has scheduled almost 90 days for the criminal trial up until September 2025, beginning on Tuesday.

Exact details of how Volkswagen developed the illegal software and decided to install the programmes in diesel vehicles remains unclear to this day.

A first major fraud trial against four other ex-VW executives and engineers has not yet produced any major findings after three years of proceedings.

Winterkorn was initially supposed to face charges in that earlier trial, which began in Braunschweig in September 2021.

Shortly before the trial began, however, an expert opinion certified that Winterkorn was unfit to stand trial following several hip operations. In order to make progress with the investigation into the "Dieselgate" scandal, the judge separated the Winterkorn case from those proceedings.

Winterkorn underwent a further knee operation in July this year following a medical emergency. The operation went well, but he required a stay in a rehabilitation clinic.

"I'm doing quite well today," Winterkorn told reporters as he walked with a visible limp into the courthouse on Tuesday.

According to the court, around 9 million vehicles in Europe and the US were affected by the VW cheating scandal, with buyers allegedly suffering financial losses of several hundred million euros.