61226
Volkswagen Pleads Guilty in US Court in Diesel Cheating Scandal
Economy, Auto

Volkswagen Pleads Guilty in US Court in Diesel Cheating Scandal

Volkswagen AG pleaded guilty on Friday to fraud, obstruction of justice and falsifying statements as part of a $4.3 billion settlement reached with the US Justice Department in January over the automaker’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, and comes as the automaker strives to put the most expensive ever auto industry scandal behind it, Reuters reported.
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 $25 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 authorized by the company’s board of directors to enter a guilty plea.
“Your honor, 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.
Investors in VW stock took the news in stride after the expected guilty plea, sending shares up slightly in Germany to close up 0.3% at 143.70 euros.
VW has agreed to spend up to $10 billion to buy back diesels that emit up to 40 times legally allowable pollution, along with at least $5,100 per owner in additional compensation.
Cox said he was considering a motion made by a lawyer for some owners on whether to allow additional restitution for victims.
“This a very, very, very serious crime. It is incumbent on me to make a considered decision,” Cox said.
The Justice Department and VW have argued that the automaker has already agreed to significant restitution.
“Volkswagen deeply regrets the behavior 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. “Volkswagen today is not the same company it was 18 months ago.”

Short URL : https://goo.gl/nNrCQ9
  1. https://goo.gl/fNcqsE
  • https://goo.gl/JuAUBN
  • https://goo.gl/Fkndf2
  • https://goo.gl/Wr3HFh
  • https://goo.gl/uyitc1

You can also read ...

Oberbank Deal to Trigger European Finance Flow
The chief executive of Oberbank–whose bank this week became...
Apparel tops the list of goods smuggled into Iran.
The Ministry of Industries, Mining and Trade has introduced...
SCI Puts Inflation at 8%
The goods and services Consumer Price Index in the 12-month...
Unwanted Mehr Housing Units to Be Repurposed
With the aim of bringing to a close the protracted and...
Proton Dissolves Dormant Subsidiary in Iran
Malaysian industrial group DRB-Hicom Berhad, the owner of...
VW Seeking Long-Term Cobalt Supplies in Shift to Electric Cars
Germany’s Volkswagen is moving to secure long-term supplies of...
The deal was signed on September 12 at a Daimler factory in Wörth am Rhein, in Germany’s western state of Rhineland-Palatinate.
Data released by Iran Khodro Diesel, a subsidiary of IKCO,...
CBI Tweaks  FTZ Rules
In its latest directive to the banking system, the Central...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus