Volkswagen Pleads Guilty To Diesel Emissions Scandal

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Volkswagen AG’s general counsel Manfred Doess pleaded guilty on Friday, on behalf of the company, to three felony counts as part of a $4.3 billion settlement reached with the Justice Department in January over the automaker’s diesel emissions scandal.

Doess spoke at a hearing in U.S. District Court in Detroit and was authorized by the board of directors of VW to enter a guilty plea. This is the first time the company has pleaded guilty to criminal conduct in any court.

Doess said, “Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts.” The three counts were conspiracy to commit fraud, obstruction of justice and entry of goods by false statement charges.

U.S. District Judge Sean Cox accepted the guilty plea and set an April 21 sentencing date.

“This a very, very, very serious crime. It is incumbent on me to make a considered a decision,” Cox said.

The automaker has already agreed to change the way it operates in the United States and other countries under the settlement it reached in January. Volkswagen agreed to pay $4.3 billion in U.S. civil and criminal fines.

In its plea agreement, VW agreed to sweeping reforms, new audits and oversight by an independent monitor for three years. The company has also agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offer to buy back about 500,000 polluting U.S. vehicles.

Volkswagen shocked the world with its emissions scandal when it installed secret software in 580,000 U.S. vehicles which enabled it to beat emissions tests over a six-year period. Not only that but it resulted in up to 40 times the legally allowable level of pollution.

An assistant U.S. attorney, John Neal, told the court that this scheme “was a well thought-out, planned offense that went to the top of the organization.”