Wed | Aug 23, 2017

Volkswagen to pay $2.8 billion in US diesel emission scandal

Published:Sunday | April 23, 2017 | 4:00 AM
This September 28, 2015 photo shows Volkswagen’s only test centre in North America in Oxnard, California. Three years after Volkswagen opened the pollution testing centre, VW admitted that it manipulated emissions results in 482,000 US diesel vehicles to make them appear to run cleaner, raising questions around Volkswagen’s only test centre in North America.

A judge on Friday ordered Volkswagen to pay a $2.8 billion criminal penalty in the United States for cheating on diesel emissions tests, blessing a deal negotiated by the government for a "massive fraud" orchestrated by the German automaker.

US District Judge Sean Cox stuck to the plea deal during the sentencing hearing, six weeks after VW pleaded guilty to conspiracy and obstruction of justice in a scheme involving nearly 600,000 diesel cars in the US. They were programmed to turn on pollution controls during testing and off while on the road.

Speaking from the bench in the heart of the global auto industry, Cox said he was amazed that VW would commit such a crime.

"Who has been hurt by this corporate greed? From what I can see, it's not the managers at VW, the ones who get paid huge salaries and large bonuses. As always, it's the little guy," the judge said, referring to car buyers and VW's blue-collar workers who might earn less in the future.

Separately, VW is paying $1.5 billion in a civil case brought by government regulators and spending $11 billion to buy back cars and offer other compensation.

Seven employees have also been charged with crimes in the US, but five are in Germany and are unlikely to be extradited.

Cox urged the German government to "prosecute those responsible for this deliberate massive fraud that has damaged an iconic automobile company."

In brief remarks to the judge, VW defence attorney Jason Weinstein says the criminal fine is an "appropriate and serious sanction."

VW general counsel Manfred Doess said the company is not the same one that was caught 18 months ago.

"Volkswagen deeply regrets the behaviour that gave rise to this case. ... Plain and simple it was wrong," Doess said. "We let people down and for that we're deeply sorry."

- AP