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Guilty Plea Expected In Volkswagen Diesel Case

Guilty Plea Expected In Volkswagen Diesel Case

Volkswagen is expected to plead guilty today in court proceedings associated with the company’s diesel scandal. Specifically the company will plead guilty to three felony counts in a plea deal reached with the U.S. Department of Justice.

The plea agreement was announced in January and includes several provisions. In the deal, VW agrees to significant reforms to the company’s operations and new audits by independent firms.

The reforms also include the near $25 billion price tag the scandal has had for VW. A big chunk of that price tag includes the costs of the company buying back 500,000 vehicles from customers in the U.S. alone. About $4.2 billion of the settlement is going to U.S. civil and criminal lawsuits associated with the matter, while $3 billion will go to offset the company’s environmental impact from the dirty diesels. An additional $2 billion is to be invested in zero emissions vehicle infrastructure and awareness.

Volkswagen’s arraignment is slated to occur today in the U.S. District Court of Detroit. The company’s plea agreement stems from the German automaker wishing to put the issue in the past. VW has admitted the company installed software on its diesel powered vehicle to cheat U.S. emissions tests, allowing the pollution levels of 580,000 vehicles to be approximately 40 times the legal limits.

Given the criminal intent of the matter, the Justice Department has also charged seven current and former VW executives allegedly involved in the matter. One of the seven is already in U.S. custody and awaiting trial, while five are believed to be in Germany and have not been arraigned.

 

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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