Audi diesel scandal: convicted of thousands of counts of fraud

Status: 06/27/2023 4:05 p.m

170 days of negotiations, more than 190 witnesses heard – the trial against ex-Audi boss Stadler and his co-defendants was a challenge for the judiciary. In the end, none of the convicts have to go to jail.

When Stefan Weickert entered the large, underground courtroom in the JVA Stadelheim at around 9:20 a.m., he didn’t wait long to announce the verdict. He asks those present who have just got up from their chairs to stop immediately. Then he read out the verdict: one year and nine months’ imprisonment on probation for Stadler and Giovanni P., the co-defendant ex-engine developer from Audi. Wolfgang Hatz, the group’s former head of engines, has been sentenced to two years’ probation by the Economic Criminal Court.

There is also a fine: Stadler should pay 1.1 million euros, Hatz 400,000 euros, P. 50,000 euros. The money goes in several tranches to the state justice fund as well as to charitable institutions and environmental protection associations, including the Bavarian Nature Conservation Fund, the Malteser Aid Service and the German Multiple Sclerosis Society. An external emotion was not to be seen in Hatz, Stadler and P. during the announcement.

Verdict is as expected

The verdict is not a surprise. Hatz, Stadler and P. had made a full confession weeks ago – but only after the process had lasted more than two years. Since the trial began in September 2020, Hatz and Stadler have repeatedly emphasized their innocence. Hatz and Stadler only changed their strategy after the court let it be known that a prison sentence could also be considered in view of the alleged offences.

It is still unclear whether the public prosecutor’s office will at least appeal against the Hatz verdict. While the authorities were satisfied with the suspended sentences for Stadler and P., they are still demanding a prison sentence for Hatz.

Spokeswoman Andrea Grape therefore said: “We will listen to the verdict and then decide within the one-week period whether we will take action against the verdict. If we were to appeal, we would have to consider whether to challenge the sentencing. So: Hold on we find the verdict justifiable. That will be our consideration.”

Billions in damage from manipulated vehicles

The court sees the crime of fraud as fulfilled in the case of the three accused – albeit with different degrees of severity. The chamber calculated that Hatz and P. were guilty in around 94,000 cases as charged, Stadler in around 17,000 cases.

Despite a “firm conviction” at Stadler since mid-July 2016 that certain Audi EU6 diesel models could be equipped with a potentially illegal defeat device, Stadler has not stopped the sale of these vehicles. In this respect, Stadler acted intentionally.

Audi diesel – clean only on the test bench

In the case of the co-defendants Hatz and P., the chamber started even earlier. Both had already been involved in the development of the vehicles, which were intended for the US and European markets, and were aware of the conflicting goals at an early stage.

When developing the vehicles, Audi faced the problem of having to comply with the nitrogen oxide limits applicable in the USA and Europe. At the same time, the group wanted to prevent diesel vehicles from being equipped with excessively large AdBlue tanks for exhaust gas cleaning.

The urea is used in models with a so-called SCR catalytic converter and is injected during the emission control process. However, during test drives it turned out that the cars on the road used too much AdBlue to be really clean on the road. Audi helped with software that ensured that the vehicles emitted fewer pollutants, at least on the test bench, and thus complied with the limit values.

“Extraordinary Procedure”

The reading of the reasons for the verdict lasts until late afternoon. The consequences of the judgment, which is not final, should not be insignificant in view of the criminal investigation of the diesel scandal, which is still far from being completed. Four other Audi managers alone have been charged, but it is unclear when a trial will take place.

After today’s verdict, court spokesman Laurent Lafleur spoke of an “extraordinary procedure that also tested the limits of the judiciary’s ability to perform. After more than 170 days of negotiations and over 190 witnesses, the judiciary passed this test”.

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