Volkswagen Automaker Accused of Cheating on Emissions by Environmental Protection Agency

Apr 15, 2019:

https://www.cnn.com/2019/04/15/business/winterkorn-volkswagen-diesel-fraud-charges/index.html

Sep 10, 2018:

http://www.latimes.com/business/la-fi-volkswagen-trial-20180910-story.html#

May 2, 2018:

http://thehill.com/policy/energy-environment/385909-arizona-settles-suit-with-volkswagen-for-40-million

Dec 6, 2017:

Oliver Schmidt was sentenced to seven years in prison and ordered to pay a $400,000 fine for his part in the VW emissions conspiracy.

Most of the remaining VW employees suspected of involvement are outside of the U.S. in Germany. Because Germany does not extradite its citizens, those suspected employees will most likely not stand trial in the U.S.

Aug 4, 2017:

In Detroit, Michigan, Oliver Schmidt, the former head of Volkswagen's environmental and engineering center in Michigan, pleaded guilty to charges of 1) conspiracy to defraud the federal government, 2) violating the Clean Air Ac, and 3) aiding and abetting wire fraud.

Schmidt admitted to conspiring with other VW employees to defraud the U.S. federal government by failing to inform U.S. officials of the emissions scheme, and by submitting falsified emissions reports to federal regulators.

Apr 21, 2017:

In Detroit, Michigan, U.S. District Judge Sean Cox sentenced Volkswagen to three years probation and independent oversight (organization probation).

Mar 10, 2017:

In a U.S. District Court in Detroit, Michigan, Volkswagen pleaded guilty to fraud, obstruction of justice and falsifying statements.

Jan 26, 2017:

Volkswagen's head of compliance (responsible for integrity and legal affairs), Christine Hohmann-Dennhardt, will leave her job after joining the company in January of 2016.

Jan 11, 2017:

Volkswagen agreed to pay $1.5-billion in U.S. civil fines and $2.8-billion in U.S. criminal fines for its nearly 10-year involvement in the diesel emission tests conspiracy. Volkswagen also agreed to pay the state of California an additional $153.8 million.

Volkswagen also agreed to plead guilty to three felony counts:

participating in a conspiracy to defraud the United States and VW's U.S. customers and to violate the Clean Air Act

obstruction of justice for destroying documents related to the scheme

importing these cars into the U.S. by means of false statements about the vehicles' compliance with emissions limits

In addition, six current and former senior VW executives were indicted by the U.S. Department of Justice for their involvement in the conspiracy. The indictment alleges that top VW executives knew about the conspiracy and chose not to expose the truth to regulators, shareholders, and consumers by destroying documents and other evidence.

Source:

Kennedy, Merrit. (January 11, 2017). "Volkswagen To Plead Guilty, Pay $4.3 Billion In Emissions Scheme Settlement". NPR. Retrieved 2017-01-11.

Dec 20, 2016:

In San Fransisco, U.S. District Court Judge Charles Breyer approved a $1 billion settlement where Volkswagen will either fix or buy back polluting luxury VW, Audi and Porsche vehicles with 3.0-liter engines. In addition to the $1 billion, Volkswagen will also pay additional "substantial compensation" to vehicle owners, the amounts of which have not yet been decided.

As part of the settlement, Volkswagen will pay $225 million in environmental remediation.

Oct 25, 2016:

In San Fransisco, U.S. District Court Judge Charles Breyer approved a $14.7 billion settlement between Volkswagen, the U.S. Justice Department, the U.S. Federal Trade Commission, the state of California, and vehicle owners who filed a class action lawsuit.

As part of the settlement, Volkswagen will pay $10.033 billion on vehicle buybacks and owner compensation, $2.7 billion to mitigate environmental damage, and $2 billion for clean-emissions projects and infrastructure.

Owners who choose a vehicle buyback will receive the pre-scandal trade in value of their vehicles ($12,475 to $44,176). Owners who choose to have their vehicles fixed will receive $5,100 to $9,852 depending on the book value of their vehicle.

The settlement applies to 2.0-liter polluting diesel Beetle, Golf, Jetta, Passat, and Audi A3 cars from the 2009 through 2015 model years. As many as 490,000 people will be part of the settlement.

The U.S. Justice Department and German prosecutors are still pursuing criminal investigations in relation to Volkswagen's 85,000 polluting 3.0-liter vehicles. Volkswagen also faces lawsuits from at least 16 U.S. states for additional claims.

Jun 28, 2016:

Volkswagen announced it has agreed to pay up to $15 billion to settle claims related to its deceptive emissions software. Volkswagen will either repair or buy back the vehicles, and vehicle owners can receive up to $10,000 in cash compensation. The U.S. Department of Justice said that owners will have until May 2018 to decide on repair versus buy back.

The $15 billion will be allocated and used as follows:

  • As much as $10 billion will be used to buy back vehicles and compensate owners.
  • $2.7 billion will be given to federal and state of California regulators to fund pollution-reduction projects.
  • $2 billion will be invested in clean technology.

The criminal investigation being conducted by the U.S. Department of Justice is still ongoing.

Volkswagen has a web page entitled Volkswagen/Audi Diesel Emissions Settlement Program where you can get all the details of the settlement and check eligibility by entering the vehicle Vehicle Identification Number (VIN).

Apr 21, 2016:

In a federal District Court in San Francisco, California, Volkswagen, the Environmental Protection Agency (EPA), the California Air Resources Board, and a group of consumers who filed lawsuits against Volkswagen agreed to a settlement plan.

Under the plan Volkswagen will either repair or buy back about 480,000 vehicles. The financial details of the plan are still being agreed upon. The settlement applies only to two-liter engine vehicles. A settlement regarding vehicles with three-liter engines (about 85,000 Volkswagen, Audi, and Porsche models) is still ongoing.

Mar 14, 2016:

In Braunschweig, Germany, a $3.7 billion lawsuit was filed on behalf of 278 institutional investors from many different companies around the world, claiming that Volkswagen did not publish information about the emissions scandal in a timely manner.

Seventy other lawsuits are pending in Braunschweig over losses on shares of Volkswagen stock.

Nov 9, 2015:

Volkswagen AG announced it is offering a "Goodwill Package" to U.S. owners of vehicles affected by the deceptive emissions software. The package includes a $1,000 credit, half of which must be spent at VW and Audi dealerships.

Volkswagen has a website entitled Volkswagen Diesel Information where you can get all the details of the emissions problem, and the Goodwill Package and how to apply.

Nov 3, 2015:

Volkswagen AG announced it has found faulty emissions in approximately 800,000 gasoline-powered vehicles.

Oct 8, 2015:

In Washington, D.C., Volkswagen Group of America President and CEO Michael Horn testified before the congressional House Committee on Energy and Commerce Subcommittee on Oversight and Investigations. Here are the highlights from his testimony:

  • Horn apologized
  • Horn said he knew of possible problems in the spring of 2014, but confirmation of the software wasn't until early last month (September)
  • Horn said the software was put in place by a couple of software engineers, it was not a corporate decision, and that senior-level corporate managers and administrators had no knowledge of it
  • When asked whether the purpose of the software was to beat emissions tests, Horn said that to his knowledge that was the purpose
  • Horn said that software fixes will be available starting in January 2016 for the most recent generation engines
  • Horn said that Volkswagen is working with dealers in the U.S. to address diesel vehicles in their possession
  • Horn said that for some vehicles hardware changes will be required in addition to fixing the software

Sep 30, 2015:

Volkswagen announced that nearly 1.2 million diesel vehicles in the United Kingdom have the deceptive software installed.

Sep 26, 2015:

In the past week, 89 federal lawsuits have been filed against Volkswagen in the United States, most of which are on behalf of auto owners seeking class action status, claiming their cars have been devalued by Volkswagen's deceptive behavior.

Another lawsuit has been filed on behalf of U.S. Volkswagen shareholders (Volkswagen stock lost 30% of its value in the past week).

Sep 23, 2015:

Martin Winterkorn, the CEO at Volkswagen, resigned.

Sep 22, 2015:

Volkswagen said that 11,000,000 VW diesel vehicles are equipped with the software worldwide.

Sep 18, 2015:

The U.S. Environmental Protection Agency accused automaker Volkswagen of installing software on diesel passenger cars that allows them to pass emissions inspections, when at all other times the vehicles are operating below emissions standards.

The software detects when an emissions test is being conducted, turns on all emissions controls, then turns off at least some of the controls for normal everyday driving, resulting in nitrogen oxide emissions up to 40 times above the EPA standard.

In the United States there are nearly 500,000 Volkswagen diesel passenger cars on the road. Affected models include the Jetta (2009-2015), the Beetle (2009-2015), the Golf (2009-2015), the Passat (2014-2015), and the Audi A3 (2009-2015).

The EPA has ordered Volkswagen to issue a recall to fix all vehicles affected.

The state of California issued a separate notice of violation to Volkswagen.

The state of California, along with the EPA and the U.S. Department of Justice are working together on further investigations.

Source:

Isidore, Chris; Valdes-Dapena, Peter. (September 18, 2015). "EPA Accuses VW of cheating on emission rules". CNN. Retrieved 2015-09-26.

Davenport, Coral; Ewing, Jack. (September 18, 2015). "VW Is Said to Cheat on Diesel Emissions; U.S. to Order Big Recall". The New York Times. Retrieved 2015-09-26.

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One comment on "Volkswagen Automaker Accused of Cheating on Emissions by Environmental Protection Agency"

  1. Really a shame. Politicians, government nationally, regionally & local are bad enough......now I can't even trust VW's. DARN!!

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