BERLIN — German prosecutors dealt a blow to Volkswagen’s efforts to put the 2015 emissions-cheating case behind it, charging the automaker’s chief executive, chairman and former chief executive officer with stock manipulation for not telling investors at the time that the scandal was about to break.
The charges announced Tuesday could pose a major distraction for chief executive officer Herbert Diess, as he pushes ahead with the company’s shift toward zero-emissions vehicles and a new, more environmentally friendly image.
Diess, chairman Hans Dieter Poetsch and former chief executive officer Martin Winterkorn were accused of deliberately informing markets too late about the huge costs to VW that would result from the scandal, which erupted when regulators discovered that millions of diesel cars had been fitted with software designed to thwart pollution tests.
Volkswagen called the new allegations “groundless” and threw its support behind Poetsch and Diess. But the case could require Diess to spend time on his defense at a crucial time for the company.
Just days ago, Diess stood on stage at the Frankfurt Motor Show with the company’s new battery-powered vehicle, the ID.3, and showed off a new version of the VW logo to underscore the automaker’s transformation.
The new car is aimed at bringing zero-emissions driving to the masses. The vehicle is supposed to be carbon-dioxide neutral throughout its production chain.
The scandal broke when the United States Environmental Protection Agency went public with it in mid-September 2015. That led to a drop in the automaker’s stock.
The charges could bring up to five years in prison, authorities said.
Winterkorn resigned shortly after the scandal erupted. Poetsch was chief financial officer at the time and became chairman in late 2015. Winterkorn was succeeded as CEO by Matthias Mueller, who was then replaced by Diess in April 2018.
Volkswagen’s board said that based on expert legal advice, it had anticipated a negotiated settlement with the EPA and did not expect the agency to announce a violation. VW said that before the EPA announcement, “management had no concrete evidence that would have made immediate notification of the capital markets necessary.”
As a result, the board said, “the successful work with the chairman and the CEO should be continued.”
Volkswagen stock fell 1.9 percent after the news.
Volkswagen admitted installing software that turned on pollution controls when vehicles were being tested and switched them off during everyday driving. That made it look as if the cars met tough United States limits on pollutants known as nitrogen oxides.
In all, some 11 million cars worldwide were equipped with the illegal software.
The scandal has cost Volkswagen more than 30 billion euros ($33 billion) in fines, recall costs and civil settlements. The automaker apologized and pleaded guilty in the United States, where two executives were sentenced to prison and six others, including Winterkorn, were charged, though they could not be extradited.
Separately, German prosecutors in April charged Winterkorn and four others with fraud in the emissions scandal. Prosecutors alleged that Winterkorn knew about the software since at least May 2015. Legal proceedings are still going on. (AP)