VW Fined Billions of Dollars for What Looks Like the Last Time

Matt Posky
by Matt Posky

Oh my God, it’s finally almost over. After a 10-year conspiracy and almost 600,000 rigged diesel cars, VW’s legal battle with the United States is coming to an end. Volkswagen pled guilty last month to conspiracy to commit fraud and the obstruction of justice after it was caught cheating on emissions tests in 2015, and we’ve been eagerly waiting the verdict and subsequent punishment.

Today, a U.S. judge ordered the automaker to observe three years of probation and shell out a $2.8 billion criminal fine. The sum, which Steph Willems has informed me equates to 135,168 VW Golfs — after delivery and rounding up to the closest car — is in addition to the company’s $1.5 billion in civil penalties, $4.7 billion in mandatory anti-pollution initiatives, and $11.2 billion diesel buyback program.

U.S. District Judge Sean Cox, who is apparently as ready for this to be over as we are, said during the Friday morning hearing that there would be no restitution to alleged victims tied to the criminal case, as it would complicate and delay sentencing. With fines already levied against the automaker and executives facing independent criminal charges, Cox stated that he believed the 2.8 billion dollar penalty and extended probationary period would be sufficient punishment.

However, he admitted to being upset over customers and employees harmed by the company’s actions, as well as the “deliberate destruction of evidence by VW management … with the participation and under supervision by [its] legal counsel.”

“This is a very serious and troubling case involving an iconic automobile company,” Cox told The Detroit News. “I just can’t believe that VW is in this situation that it finds itself in today.”

[Image: Volkswagen]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Ad Ad on Apr 22, 2017

    That's a punishment? At BMW it has been standard practice to make all male executives wear schlongringen for 10 years. In the latest models they're triggered by a smartphone app. Last used when someone suggested a five speed manual available in all new models along with non-optional steering wheel.

  • Narcoossee Narcoossee on Apr 22, 2017

    So, this is one of those cases where, if one wanted to do actual journalism (which is expensive and tedious, I know), what you'd do is track where those billions went when the gubmint gets ahold of it. IF the gubmint it truly as outraged over the environmental impact as they claim, they'd use it for remediation of the pollution caused by VW's diesels. Dollars to doughnuts, however, they'll use it for anything but that. It would make a great story on yet another example of gubmint hypocrisy.

    • See 1 previous
    • 28-Cars-Later 28-Cars-Later on Apr 23, 2017

      @Lorenzo Do all 435 representatives have space in that 2700 ft? If so the senate staff already have them beat by four fold more space per congressmen.

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