Sentence next for Volkswagen in US diesel emissions scandal

Sentence next for Volkswagen in US diesel emissions scandal
VW faces sentencing in emissions scandal
Author

22 April, 2017

The Financial Times reported that Cox approved a settlement between the vehicle maker and the USA justice department following Volkswagen pleading guilty and called the cheating "a case of deliberate and massive fraud". "It's always the little guy".

In January, Volkswagen also agreed to pay $1.5 billion to the United States to settle its civil environmental, customs, and financial violations.

During the sentencing hearing, the court accepted the parties' plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company's decade-long scheme to sell diesel vehicles containing software created to cheat USA emissions tests.

The company also released a subsequent statement announcing the appointment of Larry D. Thomson as Independent Compliance Monitor under the terms of its settlements with the USA government.

"This is a case of deliberate, massive fraud perpetrated by VW management", Cox said.

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The German automaker is paying $1.5 billion in civil penalties in the case and already has agreed to pay $11.2 billion to buy back or fix diesel cars in the US, and contribute another $4.7 billion to federal efforts to reduce pollution.

Volkswagen also has agreed to civil settlements worth about $17 billion for US consumers and dealers who own the automaker's diesel vehicles. Seven employees have also been charged. Volkswagen separately on Friday gave affected customers who declined to take civil settlements another two weeks to weigh offers, with the clock starting on different dates depending on the kinds of engines in their vehicles. He added, Plain and simple it was wrong.

"We let people down and for that we are deeply sorry", he said.

Neal disclosed that a former Justice Department official, Larry Thompson, will serve as a monitor to ensure that VW complies with the plea agreement, which includes three years of probation and complete future cooperation with any inquiries by investigators. The September 2015 disclosure that VW intentionally cheated on emissions tests for at least six years led to the ouster of its chief executive, damaged the company's reputation around the world and resulted in massive fines and pay-outs. "Volkswagen today is not the same company that it was 18 months ago", he said.


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