Ex-Volkswagen execs convicted of fraud over Dieselgate scandal

Four former Volkswagen executives have been convicted of fraud and sentenced to prison by a German court, continuing the lengthy fallout from 2015's "Dieselgate" emissions cheating scandal.

In the ruling handed down on Monday, former head of Volkswagen's diesel engine development Jens Hadler received a prison sentence of four and a half years for his involvement in the emissions testing fraud. The next longest prison term was handed to former head of engine electronics Hanno Jelden, who received two years and seven months. Emissions expert Thorsten D. was given a suspended sentence of one year and 10 months, while former components development head Heinz-Jakob Neusser's suspended sentence was one year and three months.

According to the court, the four former Volkswagen executives were among a small group at the automaker who knew of the deliberate deception regarding their vehicles' emissions output. Dozens more executives still await trial, including former CEO Martin Winterkorn who resigned over the scandal.

The Dieselgate scandal erupted in September 2015, when the U.S. Environmental Protection Agency (EPA) accused Volkswagen of cheating on emissions tests to meet regulatory standards. Specifically, the EPA found that Volkswagen was programming diesel engines to detect whether they were being subjected to emissions testing, and activate measures to temporarily lower such output.

Therefore, while Volkswagen's cars appeared to adhere to U.S. standards when tested, they were actually emitting up to 40 times more nitrogen oxide pollutants than permitted during normal operation. The automaker ultimately admitted that approximately 11 million diesel cars across the globe were fitted with these prohibited emissions-cheating "defeat devices," with vehicles from Volkswagen as well as its luxury subsidiaries Audi and Porsche impacted. 

In a separate case in a U.S. court, Volkswagen pled guilty to conspiracy, obstruction of justice, and using false statements to import cars, and agreed to pay $4.3 billion in criminal and civil charges in 2017. The company also faced consequences from other countries across the globe, being charged billions in fines, facing multiple lawsuits, seeing stock plummet, and suffering significant reputational damage.

Volkswagen has been working to rebuild its good name in the decade since, and properly earn its environmentally-friendly reputation. Betting big on electric vehicles, the company aims to exit Europe's combustion engine business and go all-electric in the region by 2033.