Volkswagen Executive Jailed for Dieselgate Scandal

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volkswagen emission scandal

Volkswagen’s dieselgate scandal continues. Now, courts are delivering verdicts for the scandal. And VW managers face punishment. For example, a South Korean court sentenced a Volkswagen executive to a year and a half in jail for interfering with the approval process of Volkswagen vehicles.

The court no longer had faith in Volkswagen due to the global scandal.

Officials only released the executive’s family name — Yun or Yoon — depending on the translation.

Several other suits remain underway. VW engineer, James R. Liang, pleaded guilty to violating U.S. clean air laws and conspiring to commit wire fraud. He made a plea deal with prosecutors. In turn, he became a witness. The court pushed Liang’s sentencing back to May 3, 2017. Prosecutors want Liang to assist with the investigation more.

Also, South Korea’s government submitted a criminal suit. The suit was filed against a managing director at the automaker’s Korean operations. That case continues.

Interestingly, managers do not want to work or travel abroad. The managers want to return home. They fear criminal charges.

Furthermore, the EU and South Korea began a trade agreement six years ago.  And so began South Korea’s hunger for imported cars. South Koreans demanded luxury vehicles. Vehicles Hyundai and Kia refused to create. Plus, VW’s woes slowed import sales last year. VW lost at least half its sales.

U.S. Volkswagen owners are able to sell their vehicles back to dealerships . This was part of the $14.7 billion compensation deal. Owners can trade-in vehicles for pre-scandal prices or repairs. Consumers receive from $5,100 and $10,000. They receive buyback fees too.  Owners have until September 2018 to decide what they want to do. VW must fix 85% of affected vehicles by June 2019. The automaker faces additional consequences if it does not.

The $14.7 billion deal includes $2.7 billion for an environment trust, and another $2 billion to invest in ‘green’ vehicles.

But dark clouds hampered chances of a resolution. In early November 2016, California regulators found a device in Audi cars meant to cheat emissions tests. The finding sent more than one Volkswagen executive scrambling.

More Bad News If You Are A Volkswagen Executive

Per Forbes:

“According to the paper, the cheater device is camouflaged as a warm-up function. As long as the warm-up runs, the transmission stays in a low rev mode, it uses less fuel and produces less CO2. This fuel saver mode is only active when the vehicle is in the testing bay. In normal traffic, the warm-up is deactivated, and the transmission switches to a mode with higher fuel consumption.”

In addition, if this report holds true, Volkswagen may pay unclaimed car taxes. Carbon dioxide (CO2) emissions relate to the car tax owed. In early 2016, VW claimed over 800,000 vehicles sold in the EU had understated CO2 figures. Therefore, the tax amount could go even higher now.

Plus, this time the company cannot explain away the findings easily.  Merely suspending engineers will not work. A document described the device. VW employed this tactic in the past.

Source: Forbes

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