Top Volkswagen executives on trial

The trial of former Volkswagen human resourcesperfect and so ending up being abused by those in
executive Peter Hartz has ended on Friday, Januarypower. Furthermore the chairman is also given an
26. And the verdict? Hartz received a two-yearextra vote which gives him the power to tip the scales
suspended sentence and a fine. The bribery andin votes resulting to the separation of labor and
corruption case of Peter Hartz was feasted on bymanagement. This type of system gives the
journalists and camera teams with matching angryshareholder representatives with the advantage
protesters outside the courthouse in the town ofespecially in close boardroom battles.
Braunschweig.And lastly the Hartz case has become an eye
Peter Hartz was a former top manager ofopener to the German public especially since never in
Volkswagen and a member of the IG Metall tradetheir wildest dream did they ever think that such a
union and the Social Democratic Party (SPD). He wasdistinguished man like Peter Hartz that authored
also a special advisor to Chancellor GerhardGermany's Labor reforms and who is renowned for
Schröder (SPD). He devised the draconian laborhitting record breaking targets for exports year after
market reforms that bear his name. During the trialyear is involved in one of the country's biggest plunder
Peter Hartz was called with various names such asever.
traitor, scoundrel and most of the angry protestersAbout Volkswagen
were shouting for him to be put to jail.Volkswagen is a 20th century icon and unparalleled in
Hartz trail was conducted in a rapid speed althoughterms of its production of legendary cars and quality
he was charged with 44 criminal offenses; amongauto parts like Volkswagen brake hose. The Beetle
them are bribery, undue influence and breach ofwhich is an original masterpiece of the German
fiduciary duty amounting to 2.6 million. His initialautomaker has become the world's best-selling car of
appearance inside the court only lasted an hour.all time. Volkswagen's bus was also branded as a
After a short deliberation, the chairman of the judges,symbol of generation while the Golf was deemed by
Gerstin Dreyer , announced that the court has reachedmany as a modern masterpiece. All the mentioned
a prior agreement with all involved basing on thevehicles manufactured by Volkswagen have become
credible confession of Peter Hartz. He further declaredan indelible part of the cultural and personal lives of
that since Hartz has pleaded guilty on the charges andmillions of people around the world.
has confessed the whole truth, punishment would beVolkswagen was founded in an era where privilege is
reduced to a two-year suspended sentence and alimited to a few number of people only. And this is
fine of not less than 300,000. The said decision wasexactly what motivates Ferdinand Porsche to come
ratified last Friday.up with the idea of a people's car or Volkswagen in
Volkswagen has also made it clear that it does notGerman. It was in the year 1934 when Porsche
want details of the corruption involving the longcreated the first people's car for Europe and a year
standing works council Chairman Klaus Volkert and thelater a working prototype was launched.
other 23 works council members to be aired in openBy the end of 1942, almost 70,000 Volkswagens
court. Lots of questions are still unanswered. Thewere produced. Three years after in a swift recovery
German public would like to know what Volkert do inafter the war, Volkswagen produced almost 2,000
return for receiving the questioned "special bonuses"vehicles for the Allied Forces and the new German
amounting to 1.9 million between the years 1995 toPost Office. The year 1948 was another good year
2005. Another mind-boggling question is the paymentfor Volkswagen; it was able to produce 25,000
of 399,000 to Volkert's Brazilian lover, what was it for?Volkswagens from its production lines in Wolfsburg.
Two Beetles were produced during this year and was
"It would have been quite interesting to discuss in theshipped to United Sates. A year after another batch of
courtroom, or possibly later before the High Court, theVolkswagens was produced including Volkswagen
question whether the alleged bribing of a works councilKarrman convertible which became the best-selling
boss harmed or benefited the enterprise. Perhaps theconvertible in the world.
money paid was worth it. Since every day of industrialThe year 1955 has signaled the growth for
peace is worth a great deal of cash," wrote HansVolkswagen since it was during this year that the
Leyendecker in the Süddeutsche Zeitung.automaker was able to produce a million
Hartz Case an Eye-OpenerVolkswagens. Since then it has grown into a world
The scandal that happens in Volkswagen has resultedcorporation, building factories and working communities
for the German public to doubt their country's post warin countries like United States, Brazil, and Canada.
system of corporate governance. The felt cheatedVolkswagen has not also forgotten to help its fellow
and betrayed. They also began questioning thecountrymen; the German automaker has also put up
system's vulnerability to serious abuse. Under theworking communities in major centres in Western
system called codetermination, labor representativesEurope.
are allowed by law to obtain half the seats on aIn less the last fifteen years of the millennium
company's supervisory board which in turn gives themVolkswagen has become a true global force in the
the opportunity to control management decisions.auto industry and ranked fourth as the largest
As they say power corrupts. The system is not thatautomaker in the world following GM, Toyota and Ford.