Volkswagen executive sentenced to seven years for US emissions fraud

Oliver Schmidt was also fined $400,000 for his role in Volkswagen’s diesel emissions scandal

Oliver Schmidt, a former Volkswagen executive, has been sentenced to seven years in prison in the US. Photograph: Joe Wilsens/EPA

Oliver Schmidt, a former Volkswagen executive, has been sentenced to seven years in prison in the US. Photograph: Joe Wilsens/EPA

 

A US-based Volkswagen executive who oversaw emissions issues was sentenced to seven years in prison and fined $400,000 (€339,000) by a judge on Wednesday for his role in a diesel emissions scandal that has cost the German automaker as much as $30 billion.

The prison sentence and fine for the executive, Oliver Schmidt, were the maximum possible under a plea deal in August the German national made with prosecutors after admitting to charges of conspiring to mislead US regulators and violate clean-air laws.

“It is my opinion that you are a key conspirator in this scheme to defraud the United States, ” US District Judge Sean Cox of Detroit told Mr Schmidt in court. “You saw this as your opportunity to shine ... and climb the corporate ladder at VW.”

Mr Schmidt read a written statement in court acknowledging his guilt and broke down when discussing his family’s sacrifices on his behalf since his arrest in January.

“I made bad decisions and for that I am sorry,” he said.

US Department of Justice trial attorney Benjamin Singer argued in court that Mr Schmidt was “part of the decision making process” at VW to hide a scheme to fake vehicle emissions results and had opportunities tell regulators the truth.

“Every time he chose to lie,” Singer said.

In March, Volkswagen pleaded guilty to three felony counts under a plea agreement to resolve US charges that it installed secret software in vehicles in order to elude emissions tests.

US prosecutors have charged eight current and former Volkswagen executives. Five of those remain at large.

Volkswagen rebounded from the scandal during the past year. Chief executive Matthias Mueller last month predicted record deliveries of vehicles for the company this year, and the Volkswagen car brand has said it expects record deliveries for 2017, and raised its midterm profitability outlook.

At the Los Angeles auto show last week, the head of Volkswagen’s US operations declared, “we’re back”, citing improved US vehicle sales.

Mr Schmidt was charged with 11 felony counts and federal prosecutors said he could have faced a maximum of up to 169 years in prison. As part of his guilty plea, prosecutors agreed to drop most of the counts and Mr Schmidt consented to be deported at the end of his prison sentence.

Mr Schmidt was in charge of the company’s environmental and engineering office in Auburn Hills, Michigan, until February 2015, where he oversaw emissions issues.

He returned to Germany the same month where he was told about the existence of the software. According to Mr Schmidt’s guilty plea, later that year he conspired with other executives to avoid disclosing “intentional cheating” by the automaker in a bid to seek regulatory approval for its model 2016 VW 2 litre diesels.

The auto industry is still feeling the repercussions of Volkswagen’s diesel cheating.

Regulators in the United States and Europe are investigating other automakers for potential violations of diesel emissions rules.

On Wednesday, German prosecutors said they had begun an initial inquiry into accusations by an environmental group that BMW is selling a vehicle that emits up to seven times the allowed levels of smog-forming nitrogen oxides.

– Reuters

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