April 24, 2017

Volkswagen to pay $2.8 billion in US diesel emission scandal

21 April 2017, 09:29 | Austin Hogan

Sentence next for Volkswagen in US diesel emissions scandal

VW faces sentencing in emissions scandal

A federal prosecutor on Friday confirmed that the government plans to name former deputy USA attorney general Larry Thompson to serve as independent monitor of Volkswagen AG under a plea agreement over its diesel emissions scandal.

The German automaker pleaded guilty in March to fraud, obstruction of justice and falsifying statements after admitting to installing secret software in 580,000 US vehicles.Speaking on behalf of Volkswagen, general counsel Manfred Doess said the company "deeply regrets the behavior that gave rise to this case. "The individuals who will be hurt the most are the working men and women at VW", who likely will not get bonuses or raises because of the financial burden caused by actions of higher ranking company officials". "It's always the little guy".

Separately, VW is paying $1.5 billion in a civil case, mostly to settle allegations brought by US environmental regulators, and spending $11 billion to buy back cars and offer other compensation. Seven employees have also been charged. "This is a very serious and very troubling case involving an iconic automobile company", Cox added. In March, attorneys for both the government and Volkswagen asked Cox to accept the plea and immediately sentence the company to $2.8 billion in criminal fines.

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As part of pleading guilty, VW admits that they deliberately programmed 600,000 diesel cars distributed in the deceive users - programming them to turn on pollution controls while being tested and then turning them off when on the road, in the hands of a consumer.

Before Cox imposed his sentence Manfred Doess, the automaker's general counsel, again appeared on behalf of the world's largest automaker to apologize and vowed that the company's corporate culture is changing.

"Volkswagen deeply regrets the behavior that gave rise to this case". Oliver Schmidt, a German national and former VW executive once responsible for the company's compliance with USA emissions regulations, was arraigned on criminal charges earlier this year.

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