Former Volkswagen CEO Martin Winterkorn charged in US over diesel emissions cheating scandal

Indictment alleges scheme 'went right to the top' of VW, says US attorney general Jeff Sessions

Winterkorn resigned after the emissions scandal began (Getty)

Former Volkswagen boss Martin Winterkorn has been charged with conspiracy to defraud the US government as a probe into the diesel emissions scandal deepens.

The Department of Justice accuses the chief executive of violating the Clean Air Act by covering up Volkswagen’s cheating of emissions tests.

Volkswagen has already pleaded guilty to related charges over its use of software that allowed cars to produce a significantly smaller amount of nitrogen oxides (NOx) and other emissions when they were undergoing tests than they did on the road.

An indictment filed in March and unsealed on Thursday alleges that Mr Winterkorn knew by around March 2014 of a study showing that VW’s diesel vehicles produced illegal levels of emissions.

Mr Winterkorn is alleged to have received a memo in May of that year explaining the situation that said: “A thorough explanation for the dramatic increase in NOx emissions cannot be given to the authorities.”

The court documents describe a July 2015 meeting in which VW staff allegedly presented the chief executive with slides showing a “clear picture” of how the company was cheating tests.

Mr Winterkorn denies wrongdoing and has said he did not know his company was cheating tests until August 2015.

The company then put forward its 2016 models to US regulators without informing them of the “defeat device” software, the DOJ alleges.

“The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company,” attorney general Jeff Sessions said in a statement.

“These are serious allegations, and we will prosecute this case to the fullest extent of the law.”

The bill for the scandal has already hit $30bn (£22bn) for Volkswagen thanks to fines, compensation payments to vehicle owners and refitting costs.

However, in the UK, Volkswagen’s customers have yet to secure any payout.

In the US, victims of the automotive giant’s emissions cheating have received a pay-out of more than $15bn, but in the UK, owners of 1.2 million affected vehicles have yet to receive any compensation.

Aman Johal, director of Your Lawyers, a consumer rights law firm which is on the steering committee of a claim against VW, said Mr Winterkorn’s arrest was a wakeup call for UK authorities.

“They should be following the lead of the US. Volkswagen must be held to account over the fraud it carried out in the UK and properly compensate its customers,” he said.