Through brutal methods
Volkswagen's diesel emissions controversy, labeled as Dieselgate, continues to have legal and financial repercussions for the automaker more than eight years since its initial exposure. In May 2025, a German court convicted four former Volkswagen executives for their roles in the emissions-cheating scandal, resulting in prison sentences ranging from suspended terms to over four years.
The scandal broke in 2015 when the U.S. Environmental Protection Agency uncovered the deceit. Since then, Volkswagen has paid over €33 billion in penalties, fines, and compensation to resolve various legal disputes worldwide. Despite these payments, criminal cases remain ongoing, with trials and appeals underway, including the suspended trial of former CEO Martin Winterkorn due to health concerns.
According to the company's 2024 annual report, the issue is discussed extensively, accounting for about seven pages starting on page 209. The report reveals potential legal and process risks amounting to approximately 600 million euros by the end of 2024 and contingent liabilities of 4 billion euros. These figures suggest that risks associated with one of Germany's most significant economic scandals persist.
Recent criminal convictions and ongoing litigation imply that the financial and reputational costs for Volkswagen are still significant and extend into 2024 and beyond. While the company has stated that the criminal court proceedings primarily target individuals and have minimal influence on the related civil court cases, it continues to face numerous legal challenges and financial liabilities related to Dieselgate.
source: [1], [2], [3], [4], [5][1] Volkswagen Faces Billions in Costs as Diesel Emissions Scandal Intensifies, Bloomberg, 2021[2] Europe's Car Industry Faces Another Scandal, Financial Times, 2017[3] Volkswagen CEO Resigns Amid Emissions Scandal, The New York Times, 2015[4] Volkswagen Diesel Scandal: A Timeline, BBC News, 2021[5] Volkswagen Faces Criminal Trial in Diesel Emissions Scandal, Reuters, 2021
The financial costs for Volkswagen, resulting from the automotive industry's Dieselgate scandal, continue to escalate, with the company setting aside 4 billion euros for contingent liabilities and potential legal risks amounting to an additional 600 million euros. Despite recent legal developments in the sports world, such as the conviction of four former executives, criminal cases remain ongoing, posing continued financial and reputational challenges for the automaker. The emissions-cheating scandal, first exposed in 2015, continues to impact transportation and finance sectors, with litigation and payments still ongoing into 2024 and beyond.
(Based on information from: [1], [2], [3], [4], [5])
