Volkswagen, a car company is ordered to pay a $2.8 billion criminal penalty in the United States for cheating on diesel emissions tests.
A federal judge in Detroit last Friday ordered the German automaker to pay $2.8 billion criminal penalty in the United States for cheating on diesel emissions test.
The federal judge decision now brings to around $30 billion costs that the company will incur after being caught cheating its diesel engines to pass U.S. emissions tests. The cost includes the price of buying back almost 500,000 vehicles sold in the country. Meanwhile, seven current and former Volkswagen employees have been charged with crimes connected to the scandal, while an investigation continues in Germany.
U.S. District Judge Sean Cox stuck to the plea deal during the sentencing hearing, six weeks after Volkswagen pleaded guilty to conspiracy and obstruction of justice in a scheme involving nearly 600,000 diesel cars in the U.S. The engines 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.
Cox insisted the German government to “prosecute those responsible for this deliberate massive fraud that has damaged an iconic automobile company.”
In reply to the judge, Volkswagen defense 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 behavior 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.”
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