VW Pleads Guilty to Three Felonies Related to Dieselgate

Still reeling from its diesel emissions scandal, Volkswagen pleaded guilty to three felonies in federal court today.

“Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts,” VW general counsel Manfred Doess said in a hearing today in Detroit.

The announcement is part of a settlement reached in January, in which VW agreed to pay $4.3 billion and plead guilty to criminal and civil penalties related to dieselgate. Today, VW pleaded guilty to conspiracy, obstruction of justice, and importing merchandise into the U.S. by means of false statements.

District Judge Sean Cox accepted VW’s guilty pleas today but pushed sentencing discussions to next month. He said he wanted more time to consider the $4.3 billion fine called for under the original settlement. Although this amount seems steep, VW should save quite a bit of money since it chose to settle. If it hadn’t settled, it could have paid between $17 billion and $34 billion.

“Volkswagen today is not the same company it was 18 months ago — the change process under way is the biggest in our history,” the company said in a statement. “We have taken significant steps to strengthen accountability, increase transparency and transform our corporate culture.”

Since dieselgate came to light in September 2015, VW has stopped selling all of its diesel cars in the U.S. Instead, it has shifted its focus toward electrified vehicles with the launch of the I.D. Buzz concept and other EVs.

Source: Reuters, Automotive News (Subscription required)

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