VW Executive Pleads Guilty to Lesser Charges in Emissions Cheating Case

Matt Posky
by Matt Posky

Oliver Schmidt, a German national and Volkswagen’s former emissions compliance manager in the United States, pleaded guilty in the U.S. District Court in Detroit for his role in the massive diesel emissions scandal. However, he didn’t cop to the complete list of charges.

Instead of the 11 felonies and 169 years of possible prison time he was initially charged with, Schmidt is down to just a couple — conspiring to mislead U.S regulators and violating the Clean Air Act. This makes him eligible for a maximum of seven years behind bars or, more likely, no jail time at all.

As part of his guilty plea, prosecutors agreed to drop most of the counts against Schmidt. He has also consented to be deported at the end of his prison term, assuming there is one. Sentencing is scheduled to take place on December 6th and will likely be accompanied by a fine between $40,000 and $400,000, whether or not he goes to jail.

“Schmidt participated in a fraudulent VW scam that prioritized corporate sales at the expense of the honesty of emissions tests and trust of the American purchasers,” Deputy Assistant Attorney General Jean Williams told Reuters. “Schmidt, along with each and every official involved in this emissions scandal, will be held fully accountable for their actions by the Department of Justice as this investigation continues.”

Considering most of the guilty parties can’t be extradited from Germany, the term “fully accountable” is likely highly contextual. Schmidt’s possible punishment is far less severe than the initial charges indicated. But, let’s face it, 169 years in prison is a little severe for someone engaged in corporate conspiracy.

Prosecutors previously admitted to wanting to “make an example” of the former executive, in hopes that automakers attempting to skirt emissions regulations would clean up their collective act.

Like Schmidt, James Liang, another VW employee who pleaded guilty to misleading regulators, is cooperating with prosecutors and will be sentenced on August 25th.

The automaker, having already paid billions in fines, issued its standard statement on the subject after the guilty plea was announced: “Volkswagen continues to cooperate with investigations by the Department of Justice into the conduct of individuals. It would not be appropriate to comment on any ongoing investigations or to discuss personnel matters.”

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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  • Erikstrawn Erikstrawn on Aug 05, 2017

    "Considering most of the guilty parties can’t be extradited from Germany, the term “fully accountable” is likely highly contextual. Schmidt’s possible punishment is far less severe than the initial charges indicated. But, let’s face it, 169 years in prison is a little severe for someone engaged in corporate conspiracy. Prosecutors previously admitted to wanting to “make an example” of the former executive, in hopes that automakers attempting to skirt emissions regulations would clean up their collective act." If 169 years is too severe, then why do we keep the death penalty around? Isn't it to "make an example" and deter criminals? If he doesn't serve at least a year, the legal system has become toothless against corporate power.

    • Th009 Th009 on Aug 05, 2017

      By the time the sentencing is done in December (why delay four months?) he'll already have been behind bars for 11 months.

  • Sgeffe Sgeffe on Aug 05, 2017

    Isn't this the dude that got nailed on a Miami layover after a hop from Cuba? (After VeeDub warned their executives not to leave their country?!) Das Shtoopidity ist shtrong in dis von, ja?

  • Wjtinfwb My comment about "missing the mark" was directed at, of the mentioned cars, none created huge demand or excitement once they were introduced. All three had some cool aspects; Thunderbird was pretty good exterior, let down by the Lincoln LS dash and the fairly weak 3.9L V8 at launch. The Prowler was super cool and unique, only the little nerf bumpers spoiled the exterior and of course the V6 was a huge letdown. SSR had the beans, but in my opinion was spoiled by the tonneau cover over the bed. Remove the cover, finish the bed with some teak or walnut and I think it could have been more appealing. All three were targeting a very small market (expensive 2-seaters without a prestige badge) which probably contributed. The PT Cruiser succeeded in this space by being both more practical and cheap. Of the three, I'd still like to have a Thunderbird in my garage in a classic color like the silver/green metallic offered in the later years.
  • D Screw Tesla. There are millions of affordable EVs already in use and widely available. Commonly seen in Peachtree City, GA, and The Villages, FL, they are cheap, convenient, and fun. We just need more municipalities to accept them. If they'll allow AVs on the road, why not golf cars?
  • ChristianWimmer Best-looking current BMW in my opinion.
  • Analoggrotto Looks like a cheap Hyundai.
  • Honda1 It really does not matter. The way bidenomics is going nobody will be able to afford shyt.
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