Volkswagen to plead guilty for their emissions cheating in the U.S.

Volkswagen is set to plead guilty for several felony counts in America.

As well as paying out billions in fines and settlements, Volkswagen are set to be entering a plea agreement with U.S. authorities to plead guilty to charges, and pay a further $4.3 billion for their wrong doings.

Volkswagen has been charged for:

Charges say that company executives knew (and probably commissioned) illegal software use, as well as producing fake documents to hide their criminal activities.

Top VW executives have been charged and indicted.

One of VW’s top engineers, James Liang, pleaded guilty to breaching environmental laws and lying to the government. He is said to be working alongside the government to identify other people responsible for the scandal.

Strict laws in America

The U.S. has very strict laws on vehicle emissions (stricter than ours in the UK), and Volkswagen’s cheating has not been taken lightly. So far, the giant auto manufacturer has paid out around $22 billion in penalty fines; settlements with consumers, dealerships and authorities; consumer claims; and investments to various health and environmental authorities.

Ironically, Volkswagen’s arguable “money motivated cheating” will be its most expensive mistake. Even though the board behind the company set aside money to pay for the scandal, it seems like they really weren’t prepared for the financial backlash that would a blow a gaping hole in their finances.

The plea agreement

The plea agreement with U.S. Justice Department will involve using the $4.3 billion to resolve diesel emissions issues, and this includes investing the money into reforms and audits. Volkswagen is to be monitored by an independent body for three years to make sure they don’t break any more emissions laws.

The charges say that Volkswagen used an illegal “defeat device” to pass strict tests in the U.S. when, really, it was failing the legal limit by up to 40 times.

The Nitrous Oxide emissions (NOx) is a harmful pollutant that damages plant life and causes respiratory problems. This pollutant is said to have carcinogenic properties; raising the risk of cancer in humans. In the modern day when global warming and environmental impact can no longer be ignored, emissions pollution must be monitored and governed. In the U.S., this responsibility is a strong one, which is probably why Volkswagen have paid out so much already over the pond.

However, here in the UK, Volkswagen is reluctant to do anything to properly compensate UK consumers. That’s why we are taking action for UK victims and already representing thousands of people affected by the scandal

Although Volkswagen is denying liability in the UK thus far, we see their guilty pleas in the U.S. as a useful tool. Are they really going to deny responsibility in one country and admit criminal charges in another?

We don’t think so!