VOLKSWAGEN has pleaded guilty to fraud, obstruction of justice and falsifying statements over the emissions-rigging scandal.
It is the first time the German car manufacturer has pleaded guilty to criminal conduct in any court in the world, as it looks to put the most expensive ever motor industry scandal behind it.
It comes just a fortnight after the Paul Willis, the UK boss of Volkswagen dismissed the compensation claims of over 10,000 British motorists including hundreds in Scotland. VW general counsel Manfred Doess told a court in Detroit the criminal acts occurred in both Germany and the United States.
VW admitted that vehicles were fitted with illegal software which allowed them to cheat emissions tests over a six-year period and emit up to 40 times legally allowable pollution.
In a separate negotiated deal with the Department of Justice (DoJ) completed weeks ago. VW agreed to pay a $2.8 billion £2.3 billion) criminal fine in addition to a $1.5 billion (£1.2 billion) civil penalt, although the scandal has cost the company about $25 billion (£20 billion) in the United States as it seeks to address claims from owners, environmental regulators, states and dealers. It has also offered to buy back about 500,000 polluting US vehicles.
The company admitted installing software that activated pollution controls during government tests and switched them off during regular driving.
US regulators confronted VW about the software after West Virginia University researchers discovered differences in testing and real-world emissions. Volkswagen denied the use of the so-called defeat device but finally admitted it in September 2015.
US District Judge Sean Cox who set an April 21 sentencing date said he was considering a motion made by a lawyer for some owners on whether to allow additional restitution for victims.
"This a very, very, very serious crime. It is incumbent on me to make a considered decision," Cox said.
The Justice Department and VW have argued that the automaker has already agreed to significant restitution.
"Volkswagen deeply regrets the behavior that gave rise to the diesel crisis. The agreements that we have reached with the U.S. government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear," the company said in a statement. "Volkswagen today is not the same company it was 18 months ago."
Under the plea agreement, VW agreed to sweeping reforms, new audits and oversight by an independent monitor for three years after admitting to installing secret software in 580,000 US vehicles.
An assistant US attorney, John Neal, told the court that the emissions scheme "was a well thought-out, planned offence that went to the top of the organization."
He said VW could have faced £14 billion to £28 billion in fines under sentencing guidelines.
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