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Posts Tagged ‘Volkswagen diesel scandal’

Former VW Executive Sentenced to Seven Years for Diesel Scandal Role

Oliver Schmidt could face seven years in prison.

by on Dec.06, 2017

Former VW manager Oliver Schmidt pleaded guilty as part of diesel gate, but now says in a letter to the judge he was used by the automaker.

Former Volkswagen executive Oliver Schmidt, the second person to admit guilt in the automaker’s diesel emissions scandal, was sentenced to seven years in prison for his role in VW’s diesel scandal in Detroit today.

Schmidt, seeking some leniency in his sentencing, wrote a letter to the federal judge hearing the case claiming he was “misused by VW.”

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Lawyers for both sides argued about level of Schmidt’s involvement in the scandal. Ultimately, the judge sided with prosecutors sentencing him to seven years rather than the 40 months his lawyers were seeking. (more…)

Early Investigation Results Clear VW Execs of Wrongdoing

German maker not releasing full reports until late autumn.

by on May.11, 2016

Volkswagen's Matthias Mueller outlined the automaker's plan to spend $8.8 billion to buy back cars with faulty diesels.

Not guilty.

Those are the findings of two separate investigations into the culpability of Volkswagen AG executives in the U.S. and Germany, according to the German automaker.

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“Although the investigation by Jones Day is still ongoing, according to information currently available, no serious and manifest breaches of duty on the part of any serving or former members of the Board of Management have been established,” the maker noted in a release. (more…)

Volkswagen Get Reprieve as Judge Extends Deadline

Automaker sorting out technical issues with possible solution.

by on Mar.25, 2016

CEO Matthias Mueller has now warned that the cost of settling the case will be "substantial."

Volkswagen made enough progress on plans to remove or fix its emissions-cheating diesel-powered vehicles in the U.S. to gain a month-long extension on the deadline for a resolution from the judge overseeing the lawsuit against the maker by the Justice Department.

Senior U.S. District Court Judge Charles Breyer gave the German automaker until April 21 to provide him with the timing of the solution as well as potential payments to owners.

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“I would hope by the 21st that as many astounding issues as possible will be wrapped up,” he said.

Breyer appointed former FBI Director Robert Mueller to supervise VW’s settlement talks with the Justice Department. He noted that Mueller informed him the automaker is making substantial progress toward a resolution that would get the polluting cars off the road. (more…)

Volkswagen CEO Muller Defends Automaker’s Honor

Plans to discuss diesel remedy with EPA this week.

by on Jan.11, 2016

Volkswagen AG CEO Matthias Mueller said VW is meeting with the EPA to propose a fix for the diesel scandal.

Volkswagen is hoping to change its image by focusing an onslaught of battery-electric vehicles in the coming years; however, in the here and now, VW execs are still fending off allegations it’s a company filled with rogue engineers engaged illegal actions tacitly approved by upper management.

“We are not a criminal brand or group,” said Volkswagen CEO Matthias Mueller, during a media event before the Detroit Auto Show. “We haven’t been that. We have made a huge default, technical default, but there was no intention against customers or authorities.”

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The automaker admitted 11 million diesel vehicles worldwide have software allowing the vehicles to hit lofty emissions and mileage targets while being tested, and then when not in test mode, adding power at the expense of the other targets. (more…)

Justice Department Sues VW Over Diesel Emissions Cheating

Feds want recall of 600,000 vehicles; fines could reach into the billions.

by on Jan.04, 2016

VW CEO Herbert Dies' assertion that the installation of defeat devices was the work of rogue engineers wasn't enough to fend off a lawsuit from the U.S. government.

The U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency, has filed a far-reaching civil complaint in federal court in Detroit, Michigan, against Volkswagen AG.

The lawsuit is aimed at forcing Volkswagen AG, and its various subsidiaries including Audi, Porsche and the Volkswagen brand, to recall more than 600,000 vehicles equipped with 2.0- and 3.0-liter diesel engines. The maker has admitted it installed a so-called defeat device in the smaller engines to rig emissions tests. It also violated federal law with the larger turbodiesels.

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While the government did not set a specific figure, the Clean Air Act spells out penalties that could top $18 billion for the smaller engine, $3 billion more for the 3.0-liter diesel. Meanwhile, the Justice Department could take further action as part of an ongoing criminal investigation. And hundreds of civil suits filed by owners, dealers and others have been consolidated into a case that will be heard by a federal court in California. (more…)

VW Scandal Will Kill Diesel Sales in U.S., China, Supplier Predicts

Continental exec says European diesel sales should remain strong.

by on Jan.04, 2016

There have been three versions of Volkswagen's 2.0-liter diesel sold in the U.S., and their problems may have killed the diesel market here.

The emission-test cheating scandal that has engulfed Volkswagen’s could kill the markets for diesel cars in North America, Japan and China, the chief executive of one of the world’s automotive supplier, Continental AG, told a German newspaper.

“The diesel passenger car could sooner or later disappear from these markets,” Elmar Degenhart predicted in an interview with Boersen-Zeitung published on Thursday.

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He added that diesel had a marketshare of only 1% to 3% in these countries, compared with 53% in Europe where tax breaks have helped fuel the expansion of the demand for passenger cars and vans powered by diesel engines. (more…)

Fixing Diesel Scandal May Cost VW $87 Bil

Automaker scoffs at Credit Suisse estimate.

by on Oct.27, 2015

VW officials are dismissing an analyst report suggesting the costs related to the diesel scandal could exceed $80 billion.

The phenomenon of “sticker shock” isn’t foreign to most, but senior leaders at Volkswagen AG might be in for a severe case when it gets the final bill for its global diesel scandal, which was recently estimated as high as $87 billion.

VW set aside $7.3 billion to deal with the issue, but analysts are beginning to take a hard look at that number and the result is that the German automaker may be underestimating what it’s going to cost them.

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With 11 million vehicles impacted, that number comes to less than $700 per vehicle to fix. While that may resolve the fix, it’s unlikely to include all of the man-hours going into solving the problem as well as settling the hundreds of lawsuits that have been filed in the U.S. alone. (more…)

California Wants Diesel Fix Answers from VW Next Month

Compliant vehicles still outperform EPA mileage ratings.

by on Oct.12, 2015

Michael Horn, head of VW of America, is going to have to tell the California Air Resources Board how the company will fix its diesels by Nov. 20, 2015.

As VW of America chief Michael Horn explained he didn’t know how the diesel cheating could happen to a dais of angry U.S. congressmen, the California Air Resources Board informed VW it better have a plan in place to fix the problem by Nov. 20.

The deadline comes 45 days after the automaker received a compliance letter on Sept. 18 regarding the diesel issue. Not only that, it appears that California officials are going to start testing other diesels from automakers other than VW to ensure they are compliant.

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Thus far, no other automakers have come forward or been caught failing to meet federal or state emissions standards or cheating to make them. VW estimates that it may have as many as 11 million diesels with the cheating software in the U.S. (more…)