VW guilty plea in US court over emissions

Volkswagen has pleaded guilty to fraud in a US court as part of a $US4.3 billion deal reached with the US Justice Department over its diesel emissions scandal.

The VW sign of Germany's Volkswagen car company

Volkswagen AG has pleaded guilty to fraud in a US court. (AAP)

Volkswagen AG has pleaded guilty to fraud, obstruction of justice and falsifying statements as part of a $US4.3 billion ($A5.7 billion) settlement reached with the US Justice Department in January over the car maker's diesel emissions scandal.

It was the first time the company has pleaded guilty to criminal conduct in any court in the world, a company spokesman said.

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 prompted massive bills.

In total, VW has agreed to spend up to $US25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.

Volkswagen's general counsel Manfred Doess made the plea on its behalf after he said at a hearing in US District Court in Detroit that he was authorised by the company's board of directors to enter a guilty plea.

"Your honour, VW AG is pleading guilty to all three counts because it is guilty on all three counts," Doess told the court.

US District Judge Sean Cox accepted the company's guilty plea to conspiracy to commit fraud, obstruction and entry of goods by false statement charges and set an April 21 sentencing date, where he must decide whether to approve the terms of the plea agreement.

VW has agreed to spend up to $US10 billion to buy back diesels that emit up to 40 times legally allowable pollution, along with at least $US5100 per owner in additional compensation.

"Volkswagen deeply regrets the behaviour that gave rise to the diesel crisis. The agreements that we have reached with the US government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear," the company said in a statement.

Under the plea agreement, VW agreed to sweeping reforms, new audits and oversight by an independent monitor for three years after admitting to installing secret software in 580,000 US vehicles. The software enabled it to beat emissions tests over a six-year period and emit up to 40 times the legally allowable level of pollution.

An assistant US attorney, John Neal, told the court that the emissions scheme "was a well thought-out, planned offence that went to the top of the organisation."

He said VW could have faced $US17 billion to $US34 billion in fines under sentencing guidelines.

VW, the world's largest car maker by sales, in January agreed to pay $US4.3 billion in US civil and criminal fines.

It halted sales of diesel vehicles in late 2015 and has said it has no plans to resume sales of new US diesels.

As part of its US emission settlements, VW agreed to spend nearly $US3 billion to offset excess emissions and make $US2 billion in investments in zero emission vehicle infrastructure and awareness programs over a decade.


Share

3 min read

Published

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world