Volkswagen Pleaded Guilty to criminal conduct in a U.S court on Friday. The case began in September 2015 after the U.S environmental regulator discovered that Volkswagen international cheated on emission tests for six years. The company was being accused of installing software that manipulated emission tests. This discovery by the U.S environment regulator lead to the company incurring massive bills, lawsuits from car buyers and shareholders, a reduction in the companies share price level and reduction in reputation which resulted in the ouster of the business's chief executive.
The company later decided to halt its plans to sell diesel vehicles in the United States in late 2015 due to the emergence of the scandal.
Volkswagen's emissions scandal
Volkswagens' emission scandal began on 18th September 2015 when the U.S environmental protection agency issued the company with a notice of violation of the Clean Air Act. The regulator accused Volkswagen of intentionally programming turbocharged direct injection engines to manipulate individual emission controls during laboratory emissions tests. More than 500,000 of this vehicles were then sold to U.S consumers.
What the company has agreed to do
To address claims from car owners, the environmental regulator, states, and dealers, Volkswagen has agreed to set aside $25 billion for fines and compensations.
The company has also decided to buy back about 500,000 VW polluting United States vehicles. The company will also spend up to $10 billion to buy back diesel cars that emit up to 40 times pollution emission levels as allowed by law and award at least $5,100 per owner in additional compensation. Under the settlement, the company also agreed to conduct its operations in the United States and other countries under the law.
The guilty plea was entered by Volkswagens' general counsel Manfred on behalf of the company. Charges brought by the countries environmental regulators will be heard on April the 21st. During the hearing, the U.S District judge said that these crimes are severe. Seven former and current executives of the company were also charged for their participation in the scandal. VW is also facing several lawsuits from its customers in the United States and around the world.
