The dieselgate bill spans into the tens of billions, but Volkswagen is getting some money back from four of the executives who helped orchestrate the emissions cheating scandal.
The settlement will see former executives, including ex-CEO Martin Winterkorn, pay the carmaker nearly €18 million ($21 million USD) in compensation for their parts in the dieselgate scandal. In addition, the company said it would receive €270 million ($330 million USD) from its Directors and Officers liability insurance policy.
The settlement came on the same day that prosecutors charged Winterkorn with giving the German Parliament false testimony, reports Reuters. The executive told the governing body that he was unaware of the company rigging diesel engine tests before it became public.
Read More: Volkswagen Is Going After Its Former CEO For Damages In Dieselgate Scandal
Former VW CEO Martin Winterkorn
Initially, executives blamed rogue engineers for the scandal but an internal investigation run by Volkswagen found that the executives breached their duties. Following the results of the investigation, which were announced in March, the automaker said that it would seek compensation from the execs who were in charge at the time:
The Supervisory Board has concluded that Prof. Winterkorn breached his duties of care as former Chairman of the Board of Management of Volkswagen AG by failing, in the period from 27 July 2015 on, to comprehensively and promptly clarify the circumstances behind the use of unlawful software functions in 2.0L TDI diesel engines sold in the North American market between 2009 and 2015.”
As part of the deal, Winterkorn will be on the hook for €11.2 million ($13.6 million USD) and Audi’s former CEO, Rupert Stadler, will have to pay €4.1 million ($5.01 million USD). The two other executives, former Audi board member Stefan Knirsch and ex-Porsche board member Wolfgang Hatz, will pay the company €1 and €1.5 million ($1.22 million and $1.83 million USD), respectively.
Former Audi CEO, Rupert Stadler