Judge orders Volkswagen to pay $2.8B in emission scandal

Posted: April 21, 2017 at 11:30 a.m.

This 2013 file photo shows the logo on the grill of a Volkswagen on display in Pittsburgh. On Friday, Volkswagen pleaded guilty in Detroit federal court for cheating on diesel emissions tests. VW agreed to pay $4.3 billion.

DETROIT — A judge on Friday ordered Volkswagen to pay a $2.8 billion criminal penalty in the United States for cheating on diesel emissions tests, blessing a deal negotiated by the government for a "massive fraud" orchestrated by the German automaker.

U.S. District Judge Sean Cox stuck to the plea deal during the sentencing hearing, six weeks after VW pleaded guilty to conspiracy and obstruction of justice in a bold scheme involving nearly 600,000 diesel cars in the U.S. They were programmed to turn on pollution controls during testing and off while on the road.

"It was an intentional effort on the part of a major corporation to evade U.S. law and lie to U.S. regulators," Assistant U.S. Attorney John Neal told the judge.

Speaking from the bench, 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, mostly to settle allegations brought by U.S. environmental regulators, and spending $11 billion to buy back cars and offer other compensation.

Seven employees have also been charged with crimes in the U.S., but five are in Germany and are unlikely to be extradited.

Cox urged the German government to "prosecute those responsible for this deliberate massive fraud that has damaged an iconic automobile company."

In brief remarks to the judge, VW defense attorney Jason Weinstein says the criminal fine is an "appropriate and serious sanction."

Read Saturday's Arkansas Democrat-Gazette for full details.


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