These four former Volkswagen executives now face prison time for their roles in a scandal that permanently changed Europe’s automotive industry as we know it. The verdict, delivered after a three-year trial in Braunschweig, Germany, underscores the significant repercussions of the emissions-cheating controversy that began a decade ago.
After all, Volkswagen had a near monopoly on the diesel market. They marketed their diesel cars as green, environmentally-friendly replacements for gasoline-powered vehicles. Until 2015, these vehicles easily exceeded 50% of Europe’s car market. Or perhaps, the emissions-cheating scandal that first revealed the company’s extensive use of deceptive software to juke emissions tests. This revelation caused an uproar amongst consumers and led to vigorous regulatory oversight.
Jens Hadler, one of the executives sentenced to prison, led the development of Volkswagen’s diesel engines. He was the mastermind behind that fraud, which the court called “egregiously severe.” Therefore, he was sentenced to prison for four and a half years. Hadler along with three other executives have been sentenced, perhaps the most significant development thus far in the still unfolding scandal. The dire circumstances have turned the continent’s relationship with diesel technology on its head.
The aftermath of the emissions-cheating scandal has sped up Europe’s move to electrification by decades. Electric vehicles (EVs) and plug-in hybrids now represent a quarter of the continent’s new car sales, and at the same time, diesel vehicles experienced a crippling plunge, now making up only 10% of the market. This shift reinforces a monumental change in consumer preferences and regulatory policies to move away from carbon-emitting sources.
Volkswagen has been the most successful automaker at this EV transition, having become Europe’s largest seller of EVs. That’s evident from the fact that in April, the company sold nearly three times as many battery-powered cars as its closest competitor, Tesla. The VW-ID 4 electric crossover exemplifies the brand’s commitment to electrification. Beyond that, it underscores their creativity in reacting to the changing state of play in the industry.
The emissions-cheating scandal should be remembered as a watershed moment in the history of the automobile. It exposed extensive corporate malfeasance and led EU lawmakers to reconsider environmental regulations and automobile technologies across Europe. The court’s verdict against the executives has been a deafening one. This is continuing to be a powerful reminder that powerful, pernicious corporations need to be sued and held accountable for massive ethical violations.
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