Back in the summer of 2005 the headlines of international magazines and newspapers were peppered with a scandal that included bribery, sex, and corruption. No, Dallas wasn't making a comeback, it was automotive giant VW and the scandal involved 2.5 million dollars in payoffs to VW Works' Council Chief Klaus Volkert and another $500k to Volkert's Brazilian lover. Those payments were used between 1994 and 2005 to bankroll sexcapades and lavish trips to Brazil and Lisbon.

In the first of four trials linked to the elaborate scandal, former Chief of Personnel Peter Hartz has confessed to paying the bribes and will receive a suspended two year sentence and a $750,000 fine. Hartz insists he acted alone in arranging the trips, yet the VW management trials will continue later this year. We're sure VW executives can't wait for all of this negative press to end. Maybe a trip to South America will help to ease the pain. We kid.

[Source: Business Week]

Former VW Personnel Chief Admits to Bribing Union Officials originally appeared on Autoblog on Sat, 27 Jan 2007 08:12:00 EST. Please see our terms for use of feeds.