Volkswagen executive gets 7 years for 'diesel dupe'

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A Volkswagen AG executive has been sentenced in the US city of Detroit to seven years in prison for his role in installing secret software in vehicles in order to elude diesel emissions tests.

Oliver Schmidt, an executive who oversaw emissions issues, was also fined 400,000 US on Wednesday in the latest development in a scandal that has cost the German automaker as much as 30 billion dollars.

The prison sentence and fine represent the maximum penalties for the charges that he conspired to mislead US regulators and violate clean-air laws.

The US-based Schmidt was actually 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 Schmidt consented to be deported at the end of his prison sentence.

“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 the defendant in court. “You saw this as your opportunity to shine... and climb the corporate ladder at VW.”

Former VW US compliance chief Oliver Schmidt speaking at a conference./ Reuters photo.

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 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 the charges that it installed secret software in vehicles in order to elude emissions tests. the case became known as "diesel dupe" or "dieselgate."

Reuters photo.

US prosecutors have charged eight current and former Volkswagen executives. Six 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.

Schmidt was in charge of the company’s environmental and engineering office in Auburn Hills, Michigan, until February 2015.

He returned to Germany the same month where he was told about the existence of the software. According to 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 liter diesels.

Source(s): Reuters