VW to receive compensation for diesel scandal

VW to receive compensation for diesel scandal

FineAuto

The automaker has reached an agreement with former CEO Martin Winterkorn and three other former top executives. Winterkorn has agreed to pay compensation in the amount of € 11.2 million.

The Volkswagen Group said it has reached an agreement with former CEO Martin Winterkorn and three other former top executives to compensate for their involvement in the Dieselgate diesel emissions scandal. In the course of resolving the incident with top managers, VW will receive 288 million euros (351 million dollars) in compensation in connection with the scandal, which cost the company more than 32 billion euros in fines, repairs and legal costs.

“Winterkorn has agreed to pay 11.2 million euros in compensation. Rupert Stadler, former CEO of Audi VW, agreed to pay 4.1 million euros. Wolfgang Hatz, former chief engineer of the VW Group, will pay 1.5 million euros. Former head of Audi development Stefan Knirsch will pay 1 million euros, ”the German concern said in a statement.

The automaker said it will also receive 270 million euros in liability insurance for its directors and officers (D&O). At the same time, the former head of Audi and VW, Ulrich Hackenberg, could not agree on compensation with the concern, so preparations will be made for a lawsuit against him.

Hackenberg was the architect of the VW Group’s MQB platform, which underpins most internal combustion engine vehicles.

Compensation payments still need to be approved by the VW Group’s annual meeting on July 22nd. At the same time, the agreed payments are the highest in Germany. Over a decade ago, former Siemens CEO Heinrich von Pierer paid his former employer € 5 million in compensation.

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