Volkswagen Emissions Scandal Update: More Employees May Be Arrested; $4.3 Billion Penalty, Largest Ever By Any Automaker
Ritwik RoyAutomaker Volkswagen has pleaded guilty emissions cheating scandal and six of its high-level employees have been indicted. The company has admitted its wrongdoing and has agreed to pay a whopping $4.3 billion as penalty. The Justice Department in Washington announced the plea deal and federal indictments on Wednesday detailing the elaborate scheme of committing fraud and then covering it up. The government stated at least 40 VW employees were involved.
According to ABC News, these 40 employees were involved in destroying evidence and the penalty that has been levied on Volkswagen is the largest ever on any automaker. In 2014, Toyota paid $1.2 billion over safety issues concerning unintended acceleration.
"VW is charged with and has agreed to plead guilty to participating in a conspiracy to defraud the United States and VW's U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators," read the statement from the United States Department of Justice.
Government documents have accused six Volkswagen employees of lying to environmental regulators and destroying files to cover up evidence. The German automaker admitted to having been involved in obstruction of justice, conspiracy and importing vehicles using false statements in a plea deal. More arrest of employees is highly possible. VW has agreed to be monitored by an independent monitor who will look after compliance and control measures for three years.
Volkswagen was accused of installing software, Defeat Device, in diesel engines on more than 600,000 vehicles in the U.S. The software allowed the engines to turn on pollution control during government tests and then turn off during general driving. When turned off, the vehicles had their engine performance significantly improved but they also emitted harmful nitrogen oxide at up to 40 times above the legal limit.
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