Volkswagen's Ex-CEO Denies Prior Knowledge of Emissions Cheating
January 19 2017 - 9:23AM
Dow Jones News
By William Boston
BERLIN-- Martin Winterkorn, Volkswagen AG's former chief
executive, on Thursday denied any personal knowledge of the German
car maker's diesel-emissions cheating in his first major public
appearance since the scandal broke in September 2015.
Mr. Winterkorn was forced to resign just days after U.S.
environmental authorities disclosed that the company had rigged
diesel engines to cheat on emissions tests. The disclosure led to
civil and criminal litigation against the company, which has
pleaded guilty to federal charges including conspiracy to defraud
the U.S. government and U.S. consumers.
Flanked by two lawyers, Mr. Winterkorn sat calmly at the witness
table facing members of a German parliamentary committee, who
peppered him with questions about his knowledge of the use of
cheating software. He denied any personal responsibility, but
declined to answer questions that became too specific, citing
ongoing criminal investigations in the U.S. and Germany.
"Of course I ask myself if I missed signals or misread them," he
said, adding that he was still "searching for satisfactory answers"
as to how the decision to cheat was made and why.
He described his profession as "engineer" and acknowledged his
love of detail, saying it was his "personal brand," which is why
"everyone is saying 'Winterkorn must have known everything.' But
that's not the case."
Mr. Winterkorn's fall from power in the wake of the scandal was
swift and deep. In his testimony in German parliament, it became
clear that he previously had frequent contact with Chancellor
Angela Merkel and other top politicians who sought his economic
counsel.
Mr. Winterkorn testified that he first learned that the
emissions problems in the U.S. were the result of the use of
illegal software, a so-called defeat device, in September 2015,
just as the scandal broke. He said he was informed at 6 p.m. on
Friday, Sept. 18, that the U.S. would charge Volkswagen with
emissions violations, minutes before the Environmental Protection
Agency published its official notice of violation.
The following day, he said, key members of the company's
management board held a telephone conference to discuss "what was
going on in the U.S." On Sunday, Sept. 19, "we met in the big
group" at the company's headquarters in Wolfsburg. The supervisory
board met the following day, Sept. 20.
"During our meeting on the weekend it became clear that it
wasn't just a U.S. problem," he said, adding that it wasn't until
Tuesday, Sept. 21, that he became aware of the full scale of the
diesel affair, that nearly 11 million vehicles world-wide were
affected.
On that Tuesday, Mr. Winterkorn spoke on the phone with Ms.
Merkel and told her "we have problems not only in the U.S. but also
in Germany."
Mr. Winterkorn said he tried to explain to Ms. Merkel how the
company could have resolved the issue. But he soon discovered that
it would be someone else's responsibility to fix the problem. Mr.
Winterkorn resigned under pressure on Sept. 23.
"As CEO I took political responsibility," he told the lawmakers,
repeatedly denying personal involvement in or knowledge of the
fraud. "I am a realist and have to accept that my name will be
closely associated with the diesel affair."
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
January 19, 2017 09:08 ET (14:08 GMT)
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