Thursday 12 January 2017

Senior Volkswagen employees charged over emissions scandal as company is handed $4.3bn fine


Six senior Volkswagen employees from Germany have been charged with fraud in the US for their alleged roles in the emissions-cheating scandal.
The company itself has agreed to plead guilty to criminal charges and pay a fine of $4.3bn (£3.5bn). The only employee under arrest over the near decade-long conspiracy was former emissions compliance manager Oliver Schmidt, who was seized over the weekend in Miami during a visit to the US. The other five remain in Germany. Volkswagen’s multi-billion dollar penalty is by far the biggest ever levied by the US government against a car manufacturer, and the second-largest criminal environmental settlement in US history, behind only BP’s Deepwater Horizon case.
In announcing the charges and the plea bargain, Justice Department prosecutors described a large and elaborate scheme inside the car company to commit fraud and then cover it up, with at least 40 employees allegedly involved in destroying evidence.
“Volkswagen obfuscated, they denied and they ultimately lied,” Attorney General Loretta Lynch said.
The settlement comes more than a decade after the car giant began designing “defeat devices” – which it fitted onto as many as 11m vehicles – that cheated exhaust emissions tests and made cars appear cleaner than they were on the road. For years, Volkswagen advertised its vehicles calling them ‘clean diesel’. Our investigation has revealed they were anything but,” Ms Lynch added.
Yet prosecutors may have trouble bringing the executives to trial in the US, since German law prevents extradition of the country's citizens to countries outside the European Union. Privately, Justice Department officials have expressed little optimism that the five VW executives still at large will be arrested, unless they surrender or travel outside Germany.

1 comment: