Top Volkswagen Executives On Trial

The trial of former Volkswagen human resourcesextra vote which gives him the power to tip the scales
executive Peter Hartz has ended on Friday, Januaryin votes resulting to the separation of labor and
26. And the verdict? Hartz received a two-yearmanagement. This type of system gives the
suspended sentence and a fine. The bribery andshareholder representatives with the advantage
corruption case of Peter Hartz was feasted on byespecially in close boardroom battles.
journalists and camera teams with matching angryAnd lastly the Hartz case has become an eye opener
protesters outside the courthouse in the town ofto the German public especially since never in their
Braunschweig.wildest dream did they ever think that such a
Peter Hartz was a former top manager ofdistinguished man like Peter Hartz that authored
Volkswagen and a member of the IG Metall tradeGermany's Labor reforms and who is renowned for
union and the Social Democratic Party (SPD). He washitting record breaking targets for exports year after
also a special advisor to Chancellor Gerhardyear is involved in one of the country's biggest plunder
Schröder (SPD). He devised the draconian laborever.
market reforms that bear his name. During the trialAbout Volkswagen
Peter Hartz was called with various names such asVolkswagen is a 20th century icon and unparalleled in
traitor, scoundrel and most of the angry protestersterms of its production of legendary cars and quality
were shouting for him to be put to jail.auto parts like brake hose. The Beetle which is an
Hartz trail was conducted in a rapid speed although heoriginal masterpiece of the German automaker has
was charged with 44 criminal offenses; among thembecome the world's best-selling car of all time.
are bribery, undue influence and breach of fiduciaryVolkswagen's bus was also branded as a symbol of
duty amounting to EUR2.6 million. His initial appearancegeneration while the Golf was deemed by many as a
inside the court only lasted an hour.modern masterpiece. All the mentioned vehicles
After a short deliberation, the chairman of the judges,manufactured by Volkswagen have become an
Gerstin Dreyer , announced that the court has reachedindelible part of the cultural and personal lives of millions
a prior agreement with all involved basing on theof people around the world.
credible confession of Peter Hartz. He further declaredVolkswagen was founded in an era where privilege is
that since Hartz has pleaded guilty on the charges andlimited to a few number of people only. And this is
has confessed the whole truth, punishment would beexactly what motivates Ferdinand Porsche to come
reduced to a two-year suspended sentence and aup with the idea of a people's car or Volkswagen in
fine of not less than EUR300,000. The said decisionGerman. It was in the year 1934 when Porsche
was ratified last Friday.created the first people's car for Europe and a year
Volkswagen has also made it clear that it does notlater a working prototype was launched.
want details of the corruption involving the longBy the end of 1942, almost 70,000 Volkswagens were
standing works council Chairman Klaus Volkert and theproduced. Three years after in a swift recovery after
other 23 works council members to be aired in openthe war, Volkswagen produced almost 2,000 vehicles
court. Lots of questions are still unanswered. Thefor the Allied Forces and the new German Post
German public would like to know what Volkert do inOffice. The year 1948 was another good year for
return for receiving the questioned "special bonuses"Volkswagen; it was able to produce 25,000
amounting to EUR1.9 million between the years 1995 toVolkswagens from its production lines in Wolfsburg.
2005. Another mind-boggling question is the paymentTwo Beetles were produced during this year and was
of EUR399,000 to Volkert's Brazilian lover, what was itshipped to United Sates. A year after another batch of
for?Volkswagens was produced including Volkswagen
"It would have been quite interesting to discuss in theKarrman convertible which became the best-selling
courtroom, or possibly later before the High Court, theconvertible in the world.
question whether the alleged bribing of a works councilThe year 1955 has signaled the growth for
boss harmed or benefited the enterprise. Perhaps theVolkswagen since it was during this year that the
money paid was worth it. Since every day of industrialautomaker was able to produce a million
peace is worth a great deal of cash," wrote HansVolkswagens. Since then it has grown into a world
Leyendecker in the Süddeutsche Zeitung.corporation, building factories and working communities
Hartz Case an Eye-Openerin countries like United States, Brazil, and Canada.
The scandal that happens in Volkswagen has resultedVolkswagen has not also forgotten to help its fellow
for the German public to doubt their country's post warcountrymen; the German automaker has also put up
system of corporate governance. The felt cheatedworking communities in major centres in Western
and betrayed. They also began questioning theEurope.
system's vulnerability to serious abuse. Under theIn less the last fifteen years of the millennium
system called codetermination, labor representativesVolkswagen has become a true global force in the
are allowed by law to obtain half the seats on aauto industry and ranked fourth as the largest
company's supervisory board which in turn gives themautomaker in the world following GM, Toyota and Ford.
the opportunity to control management decisions.Its acquisition and redevelopment of famous car
As they say power corrupts. The system is not thatbrands like Audi, SEAT, Skoda and Lamborghini has
perfect and so ending up being abused by those inadded to its strength.
power. Furthermore the chairman is also given an