Diesel Car & Light Truck News

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Ex-Audi manager faces U.S. charges over VW diesel emissions

Bloomberg  /  July 6, 2017

A former Audi AG manager was charged with fraud by the U.S. for his alleged role in helping Volkswagen AG cheat U.S. emissions standards.

Giovanni Pamio, 60, conspired to defraud U.S. regulators and consumers through software designed to cheat emissions tests in thousands of Audi vehicles marketed as "clean diesel," the Justice Department said in a news release Thursday.

"Pamio and co-conspirators deliberately failed to disclose the software functions, and they knowingly misrepresented that the vehicles complied with" emissions standards, the government said.

Pamio is the eighth person charged in the U.S. case against Volkswagen, which has cost the automaker more than $24 billion in government penalties and owner restitution. Audi is a division of VW.

An Italian citizen, Pamio worked for Audi’s diesel-engine development department in Neckarsulm, Germany. After realizing that it was impossible to calibrate a diesel engine to meet emissions standards within the company’s design constraints, Pamio directed Audi employees to implement software functions to cheat the U.S. emissions tests, the Justice Department said.

Audi spokesman Toni Melfi declined to comment and said he couldn’t provide contact information for Pamio.

Audi, which is the main profit generator at the larger carmaker, has suffered setbacks in its efforts to emerge from the emissions-cheating scandal. German prosecutors raided the company in March in connection with consumer-fraud investigations related to the case.

Defeat devices

VW admitted in September 2015 that about 11 million diesel cars worldwide were outfitted with so-called defeat devices, embedded algorithms used to game emissions tests. An agreement with regulators requires VW to compensate owners of 3-liter diesel engine vehicles, fix about 58,000 cars and buy back as many as 20,000 Touareg and Audi Q7 SUVs.

Pamio, who was identified in a lawsuit as head of Audi's V6 diesel engine development for the U.S., left the company earlier this year. He was described in a 2008 article in Automotive Design & Production as one of the founding fathers of common-rail diesel design, a fuel injection system developed by Fiat that became the industry standard.

In October 2006, Pamio was among several VW executives and managers who met with officials of the California Air Resources Board to discuss emissions standards for future light-duty vehicles, according to a lawsuit filed against VW last year by the state of New York.

Pamio was involved in a follow-up meeting with CARB on March 21, 2007, where emission control devices that would be installed on the future vehicles were discussed and VW said the emissions control system would work under "normal vehicle operation," according to company documents cited in the New York lawsuit.

While making these assurances to CARB, Pamio and more than a dozen other VW executives and managers were secretly developing defeat devices, according to New York's complaint.

Oliver Schmidt, who was VW's liaison with U.S. regulators, in February pleaded not guilty to charges of fraud and conspiracy in the case. He is in custody in the U.S. since his arrest in January while on vacation in Florida. James Liang pleaded guilty in September to conspiring to defraud regulators and is cooperating with the investigation. He is free on bond while awaiting sentencing. The others are in Germany, where they are protected from extradition.

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FCA resumes Ram 1500 diesel output

Automotive News  /  July 6, 2017

Automaker is still awaiting EPA certification to sell pickup

DETROIT -- Fiat Chrysler has begun assembling diesel-powered Ram 1500 pickups again for the first time in months, workers at the company's Warren Truck Assembly plant in Michigan say, though the automaker and environmental regulators have yet to resolve a dispute over alleged excess diesel emissions and undeclared emissions software.

Workers at the suburban Detroit factory told Automotive News that the plant is producing less than two dozen 2017 Ram 1500s per shift powered by the 3.0-liter turbodiesel V-6, previously marketed as EcoDiesel.

It is unknown whether Ram will resume use of the EcoDiesel brand name for the engine after it receives approval to sell the light-duty diesel-powered pickups. Recent mules of the Ram spotted in metro Detroit carry new badging that simply says "Diesel."

The plant stopped building EcoDiesel Ram 1500s in the middle of 2016 after the EPA raised questions about undeclared emissions software in 2014-16 EcoDiesel Ram 1500s and Jeep Grand Cherokee SUVs.

In January, the EPA hit FCA with an official Notice of Violation over the software, which it said illegally altered vehicle emissions under certain circumstances. And in May, the Department of Justice's Environmental and Natural Resources Division filed a civil suit against FCA over undeclared diesel emissions software.

FCA has said it is working with the EPA and California Air Resources Board "to clarify issues related to the Company's emissions control technology." On May 19, the company formally sought certifications from regulators to put its light-duty diesels back on sale. The Ram 1500 diesels being produced will likely be used to refill dealer stocks when FCA is cleared by regulators to sell diesel-powered light-duty pickups.

A spokesman for FCA declined to comment on the status of diesel-powered Ram 1500 output. However, the company did say in late May that it "has developed updated emissions software calibrations that it believes address the concerns of EPA and CARB, and has now formally filed for diesel vehicle emissions certification with the regulators for its 2017 model year Jeep Grand Cherokee and Ram 1500 diesel vehicles. Subject to the permission of EPA and CARB, FCA US intends to install the same modified emissions software in 2014-2016 MY Jeep Grand Cherokee and Ram 1500 diesel vehicles. FCA US believes this will address the agencies' concerns regarding the emissions software calibrations in those vehicles."

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US charges Audi manager with conspiracy to cheat US emissions tests; sacrificing NOx control for a sound system

Green Car Congress  /  July 10, 2017

The US has charged a former Audi manager via criminal complaint for his role in a conspiracy to defraud US regulators and customers by implementing defeat device software in thousands of Audi diesel vehicles to cheat US emissions tests.

Giovanni Pamio, 60, an Italian citizen, is charged with conspiracy to defraud the US, wire fraud, and violation of the Clean Air Act. Pamio was formerly head of Thermodynamics within Audi’s Diesel Engine Development Department in Neckarsulm, Germany. According to the complaint, from in or about 2006 until in or about November 2015, Pamio led a team of engineers responsible for designing emissions control systems to meet emissions standards, including for nitrogen oxides (NO_x), for diesel vehicles in the US. The complaint cited a cooperating witness (CW1)—an Audi employee who works in Audi’s Diesel Engine Development Department—as well as contemporaneous documentation in the Statement of Probable Cause.

Beginning in or about 2006, Audi was designing the new 3.0 liter diesel engine that would be the cornerstone for its passenger diesel vehicle sales in the US. The 3.0 liter diesel engine was ultimately placed in certain VW, Audi, and Porsche diesel vehicles sold in the United States for MY 09 through MY 16.

According to CW1 and the documentation, Pamio and his co-conspirators realized they could not calibrate a diesel engine that would meet the stricter NO_x emissions standards that would become effective in 2007 while staying within the design constraints imposed by other departments at the company.

According to CW1, and as corroborated by contemporaneous documentation, the proposed Audi 3.0 liter diesel engine employed Selective Catalytic Reduction (“SCR”) technology to reduce NO_x emissions. As part of the SCR technology, exhaust stream emissions were dosed with a mist of a urea substance, commonly known as “AdBlue,” which converted NO_x into nitrogen, water, and small amounts of carbon dioxide. The initial SCR design required a certain amount of AdBlue be stored onboard the vehicle to reduce NO_x emissions to legal limits and reach a 10,000 mile service interval for refilling. The requisite tank size for onboard storage was believed by certain Audi employees to interfere with features considered to be attractive to customers, such as a high-end sound system.

According to CW1, and as corroborated by contemporaneous documentation, as a result, Audi employees, acting at the direction of Pamio and his co-conspirators, designed and implemented software functions, described below as a “dosing strategy” and a “warm-up function,” to cheat the standard US emissions tests. These functions constituted defeat devices.

—Criminal Complaint, USA v. Zaccheo Giovanni Pamio

·         The dosing strategy varied injection levels of AdBlue into the exhaust system depending on whether the vehicle was being tested. During regular driving, the vehicle used substantially less AdBlue in order to limit consumption, and had correspondingly higher NO_x emissions.

·         The warm-up function used the recirculation of exhaust gas during test cycles to warm the SCR catalyst, thereby further optimizing AdBlue use and allowing the vehicle to stay within US NO_x emission limits. However, when the defeat device detected that the vehicle was on the road, the engine switched to “customer mode,” reducing the recirculation of exhaust gas, and causing NO_x emissions to spike.

Pamio and coconspirators deliberately failed to disclose the software functions, and they knowingly misrepresented that the vehicles complied with US NO_x emissions standards, the complaint states.

Audi’s parent company, Volkswagen AG (VW), previously pleaded guilty to three felony counts connected to cheating US emissions standards. The company was ordered to pay a $2.8-billion criminal fine at its sentencing on 21 April 2017.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Department of Justice’s Environment and Natural Resources Division, and Acting US Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement late last week.

A complaint is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI and EPA-CID investigated the case. This case is being prosecuted by Securities and Financial Fraud Chief Benjamin D. Singer and Trial Attorneys David Fuhr and Christopher Fenton of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell and Trial Attorney Joel La Bissonniere of the Environment and Natural Resources Division’s Environmental Crime Section, and White Collar Crime Unit Chief John K. Neal and Assistant United States Attorney Timothy J. Wyse of the US Attorney’s Office for the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case.

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2017 Fiat Chrysler diesel vehicles approved for sale by regulators

Reuters  /  July 28, 2017

WASHINGTON -- Fiat Chrysler Automobiles won approval from U.S. and California regulators on Friday to sell 2017 diesel vehicles after it came under scrutiny for alleged excess emissions in older diesel vehicles.

Fiat Chrysler hopes to use the software upgrade in 2017 as the basis of a fix to address agencies' concerns over 2014-2016 Fiat Chrysler diesel vehicles after the Justice Department sued the automaker in May, alleging excess emissions.

Regulators contended the older vehicles had undisclosed emissions controls that allowed vehicles to emit excess pollution in normal driving.

Reuters on Thursday reported the planned approvals by the U.S. Environmental Protection Agency and California Air Resources Board. 

In May, the Justice Department sued Fiat Chrysler, accusing it of illegally using software to bypass emission controls in 104,000 diesel Jeep Grand Cherokees and Dodge Ram 1500 trucks sold since 2014.

FCA CEO Sergio Marchionne said in a statement announcing the approvals on Friday that the company was eager to update the emissions control software in its earlier model-year vehicles. The company had been seeking permission for months to begin selling 2017 diesel vehicles.

Fiat Chrysler had begun assembling diesel trucks this month in anticipation of approval. The software update will have no effect on the fuel economy ratings or vehicle performance, the automaker said.

The company has denied any wrongdoing, saying there was never an attempt to create software to cheat emissions rules.

The EPA said on Friday that it had subjected these and many other vehicles to additional scrutiny with tests to prevent the use of illegal devices.

The EPA and California first accused Fiat Chrysler in January of using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks.

Reuters reported on Thursday that it could take weeks or months for regulators to sign off on testing and then approving Fiat Chrysler's plan to use the software in 2017 diesels to update older vehicles. 

The January notice of violation was the result of a probe that arose out of regulators' investigation of rival Volkswagen AG's excess emissions.

Regulators are also investigating emissions in Daimler AG Mercedes-Benz diesel vehicles, but have yet to take any action. The German automaker withdrew its request for approval to sell 2017 U.S. Mercedes-Benz diesels in May.

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Germany makes last-ditch play to save diesel at emergency summit

Bloomberg  /  August 2, 2017

MUNICH/BERLIN -- After nearly two years of constant crisis, the German car industry is looking to salvage its beleaguered diesel technology and draw a line under an emissions scandal that shows no signs of abating.

At an emergency summit in Berlin called by the government, the CEOs of Volkswagen Group, Daimler and BMW Group will face off with ministers and state leaders to convince them that, despite the steady stream of negative news, diesel has a future. Automakers are willing to further upgrade existing vehicles to lower their pollution in return for political support to avoid driving bans.

There's a lot at stake for all sides. German automakers need diesel as a stop-gap technology to buy time to catch up with the electric offerings of companies such as Tesla. And, with less than two months until a federal election, Chancellor Angela Merkel, whose ruling bloc runs the ministry overseeing carmakers, has to ward off criticism that the government is too lenient on carmakers while also not endangering the country's 800,000 industry jobs.

"The manufacturers will play their part to improve air quality in cities and make diesel fit for the future," said Matthias Wissmann, head of German auto lobby VDA, proposing reduction in nitrogen oxide emissions of at least 25 percent on average. "Diesel is enormously important for climate protection as well as prosperity in Germany."

Driving bans

The two sides are expected on Wednesday to agree to a host of measures designed to lower emissions of nitrogen oxide, which causes smog and health problems, in Germany's 15 million diesels to avoid driving bans by cities. In the run-up, carmakers and the government were haggling over software fixes -- costing several hundred million euros -- and much more expensive hardware changes that would lift the total bill to around 5 billion euros ($5.9 billion). Much of that would be paid for by the companies.

Dealing with the crisis is a difficult balancing act in Germany, where every fifth job depends on the industry and the sector accounts for more than half of the country's trade surplus. Last year, some 46 percent of the cars sold in the country had a diesel engine.

The turmoil compounds an already tense time for the industry that's struggling with the switch to EVs and a host of new challengers like Tesla, Uber and Apple, who are readying their strategies for a slice of future profits.

"The significance of the car industry is extremely high. VW is more important to Germany's economy than Greece," said Carsten Brzeski, Frankfurt-based chief economist at ING-Diba AG. "The industry has to find a solution together with government over how to face the big questions head on around the structural transformation."

The relationship between the industry and politicians in Germany has also come into focus during the scandal, with critics questioning why it's taken Transport Minister Alexander Dobrindt, who called Wednesday's meeting, nearly two years to take decisive action after U.S. authorities exposed VW's emissions cheating in September 2015.

Carmakers, and especially Germany's premium manufacturers, need diesel to power their luxury sedans and a growing fleet of thirstier SUVs, as consumers remain reticent to buy a sparse lineup of electric cars. Diesel emits about a fifth less of the greenhouse gas carbon dioxide compared with equivalent gasoline engines, making the technology key in meeting the European Union's tough emissions regulation, which will tighten further in 2020.

To shore up diesel, BMW, Daimler and Volkswagen have announced voluntary recalls of several million cars with Euro 5 and Euro 6 emissions standards, costing less than 100 euro per car. The expected reduction in NOx -- about 20 percent -- isn't enough to clean up city centers, according to environmental advocacy group Deutsche Umwelthilfe, which last week won a case at Stuttgart administrative court seeking broad diesel bans for Daimler's and Porsche's hometown. "Getting a deal and getting it right is extremely important as trust in the carmakers has been steadily eroding," said Ferdinand Dudenhoeffer, director of the University of Duisburg-Essen's Center for Automotive Research. "Industry needs to explain how the upgrades really work. Software fixes sound like smoke and mirrors to the consumer."

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As in the U.S., the environmentalists make the assumption that if diesels are banned, buyers will switch to their favored electrics. Reality is that banning diesels will see customers buying gas fueled cars, not electrics. The switch from diesel to gas will make meeting greenhouse gas reduction goals impossible.

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VW, Daimler and BMW to Upgrade 5 Million Diesels in Rescue Pact

Bloomberg  /  August 2, 2017

• Recalls include 2.5 million VW cars that are already fixed
• Automakers will contribute to fund for cleaner urban transport

Volkswagen, Daimler and BMW agreed to upgrade more than 5 million newer diesel cars in Germany and offer trade-in rebates on older models, avoiding more costly remedies in a bid to salvage diesel technology and avoid driving bans in cities.

The recalls, hashed out at an emergency summit in Berlin on Wednesday, will cost about 500 million euros ($593 million) and largely sticks to commitments that the automakers had already made. The deal allows them to dodge expensive hardware recalls, which would have ballooned costs. Meanwhile, about half the fixes have already been carried out as part of Volkswagen’s response to its cheating scandal.  

“What the agreement doesn’t do is restore consumer confidence in diesel engines,” said Arndt Ellinghorst, a London-based analyst with Evercore ISI. “Two years into the VW diesel scandal, having learned about the shortcomings of bench emission testing and ways to trick the system, consumers rightly demand new technologies.”

Top executives from the German auto industry were summoned to face off with ministers and state leaders amid a steady drumbeat of negative news about diesel pollution, dialing up concerns over the technology’s impact on urban air quality. The manufacturers agreed to absorb the costs of the upgrades, which they said wouldn’t diminish performance, fuel usage or durability.

Recall breakdown by automaker:

• Volkswagen - 3.8 million vehicles
• Daimler - 900,000
• BMW - 300,000

The aim of the fixes, which also involve vehicles from PSA Group’s Opel and some other brands, is to cut emissions of smog-inducing nitrogen oxides by 25 percent to 30 percent on average, German auto industry lobby VDA said in a statement. The bulk of the costs to the industry will come from incentives for scrapping older models. While overall details were unavailable, BMW outlined plans to offer 2,000-euro trade-in bonuses.

“I understand that many people think that the German car industry is the problem,” Daimler Chief Executive Officer Dieter Zetsche said in an emailed statement. “It’s our job to make clear that we’re part of the solution.”

There’s a lot at stake for all sides. German automakers need diesel as a stop-gap technology to buy time to catch up with the electric offerings of Tesla Inc. and Nissan Motor Co. And with less than two months until a federal election, Chancellor Angela Merkel, whose ruling bloc runs the ministry overseeing carmakers, has to ward off criticism that the government is too lenient on carmakers while also not endangering the country’s 800,000 auto jobs.

Diesel was once the calling card of German auto-engineering prowess, with the industry boasting about the technology offering more power while emitting about 15 percent less carbon dioxide than equivalent gasoline engines. German politicians in turn heavily backed diesel for decades with tax incentives that make the fuel cheaper at the pump and offered little oversight. That all started coming crashing down in September 2015 following Volkswagen’s admission that it duped regulators and consumers for years with diesels rigged to cheat on emissions tests.

“We’re in a very tough spot here, and it’s the car industry that’s responsible for this. There’s been cheating going on,” Stephan Weil, the prime minister of Lower Saxony and VW supervisory board member, said in an interview with N24 television in Berlin. “There are numerous unresolved questions, but what must be avoided at all cost is a driving ban for large parts of the German car fleet.”

Dealing with the crisis is a difficult balancing act in Germany, where every fifth job depends on the automotive industry and the sector accounts for more than half of the country’s trade surplus. Last year, some 46 percent of the cars sold in the country had a diesel engine, but demand has been sliding since Volkswagen’s scandal. And German politicians agreed there was more to be done to revive faith in the technology.

“Today’s agreement is not yet enough,” Environment Minister Barbara Hendricks told reporters after the meeting. “Software updates won’t completely resolve diesel’s NOx problem,” and the government expects “a new culture of responsibility from manufacturers.”

The turmoil compounds an already tense situation for the industry which is also struggling with the switch to electric cars and adding self-driving features, while new challengers like Tesla, Uber Technologies Inc. and Apple Inc. ready strategies to grab a slice of future profits.

The chummy relationship between the industry and German politicians has also come into focus during the scandal, with critics questioning why Transport Minister Alexander Dobrindt only now called the meeting nearly two years after U.S. authorities exposed VW’s cheating. While American consumers received generous compensation payments from the automaker, affected owners in Europe are only offered fixes.

‘Only Losers’

“In this game, there are only losers,” said Ferdinand Dudenhoeffer, director of the University of Duisburg-Essen’s Center for Automotive Research. “But the biggest loss is the credibility of the politicians,” who could have made more fundamental reforms in response to the crisis.

To comply with environmental rules, German carmakers rely on diesel to power their big sedans and a growing fleet of brawny sport utility vehicles, as consumers remain reticent to buy a sparse lineup of electric cars. The industry’s reliance on diesel has been attributed to a slow pivot to battery-powered vehicles. In the statement, the auto industry underscored the commitment to boost electric-car demand by building a fast-charging network along German highways.

“There will have to be a co-existence of electric and combustion engines in coming decades, which is why we’re investing in both technologies,” VW CEO Matthias Mueller said.

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Ford calls German diesel deal 'ineffective'

Automotive News Europe  /  August 4, 2017

FRANKFURT -- Ford Motor's German operations decided against an industry-wide program to clean up diesel cars with software updates, calling the plan ineffective.

BMW, Daimler and Volkswagen Group on Wednesday agreed to update the engine software of more than 5 million diesel cars in Germany to reduce harmful NOx emissions. Most models will be Euro 5 diesels with some Euro 6 models included in the refit recall.

Ford said it believes a software retrofit will result in "negligible customer benefit and have no real impact on air quality."

The deal also could raise "unrealistic" expectations from the authorities and non-governmental organizations, Ford said in a statement.

Instead Ford Germany is offering incentives of between 2,000 euros and 8,000 euros to encourage customers to trade in Euro 1, 2 or 3 diesels registered in 2006 or earlier for a new Ford model.

Ford said it is evaluating whether to extend the offer outside of Germany.

Volkswagen Group, BMW and Toyota also are offering trade-in incentives for older diesels in Germany.

BMW will give owners of Euro 4 or diesel cars a bonus of up to 2,000 euros when they trade in their vehicle for a BMW i3 electric car, a plug-in hybrid or a Euro 6-standard vehicle.

Toyota is offering up to 4,000 euros to German customers who swap a diesel car from any brand for a new Toyota hybrid model.

Volkswagen Group said it will give trade-in incentives for Euro 1 to Euro 4 diesel models across all brands including the VW, Audi, Porsche, Skoda, Seat marques. It did not specify how much the incentives would be.

Foreign brands criticized

German Transportation Minister Alexander Dobrindt criticized import brands, which have so far declined to take part in the software update recall because they cannot agree on a common position.

"I made it very clear during the summit that the behavior exhibited by the foreign manufacturers is entirely unacceptable," he said. "Whoever wants to retain their share of the German market must be prepared to accept responsibility for the cities, for public health and cleaner air, and these manufacturers are not yet meeting their responsibilities."

Clean air campaigners criticized Wednesday's deal, which was agreed at a summit in Berlin attended by politicians and top auto industry executives. Public health advocates and environmental lobbyists said only a more expensive hardware solution will sufficiently lower tailpipe pollutants. They also question promises from automakers that the software fix will not affect the engines' performance, fuel consumption or durability.

Volkswagen Group agreed to recall 1.5 million vehicles across its stable of brands, while Daimler will update 900,000 models and BMW said it would update emissions software on 300,000 cars. Opel, which has the lowest diesel share of any German brand, committed to unspecified improvements.

Additionally nearly 2.5 million Volkswagen Group Vehicles are receiving the software on a mandatory basis.

City bans

Ford accepted that diesels may have to be banned from areas with poor air quality. Munich and Stuttgart are among cities considering bans.

"No measures – including restrictions on vehicles in certain emission hot spots – should be ruled out," said Ford's Germany sales and marketing chief, Wolfgang Kopplin.

Pollution from diesel emissions has become a hot topic ahead of Germany's general election on Sept. 24. Chancellor Angela Merkel's government has been criticized for cozy ties to the auto industry, which is the country's biggest exporter and provides about 800,000 jobs.

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Ex-VW executive pleads guilty in diesel emissions scandal

The Financial Times  /  August 4, 2017

Oliver Schmidt, former head of US environmental compliance at Volkswagen, pleaded guilty to criminal charges in federal court in Detroit for his role in the automaker’s decade long conspiracy to cheat on emissions tests.

Mr Schmidt, a German national who appeared in US district court in Detroit on Friday, was arrested in January while holidaying in Miami.

“He pleaded guilty to conspiring to defraud the United States, to commit wire fraud, and to violate the Clean Air Act”, according to a court statement. The first charge carries a maximum penalty of 5 years in prison and/or a $250,000 fine or twice the gross gain or loss resulting from the violation, the court said. The second charge carries a maximum penalty of 2 years in prison and a $250,000 or twice the gross gain or loss resulting from the violation.

“In exchange for Schmidt’s guilty plea, federal prosecutors dropped a third charge, wire fraud, which carries a maximum penalty of 20 years in prison and/or a $250,000 fine”, the court said in a statement.

Under the terms of a plea agreement with federal prosecutors, Schmidt could face up to 84 months in prison and a fine ranging from $40,000 to $400,000. Although the agreement does not call for him to pay any restitution, it would require that he be deported after completing the sentence, the court said. Mr Schmidt, who has been in custody since his arrest in January, will remain confined pending sentencing on December 6.

He is the second person to plead guilty to criminal charges, after James Robert Liang, a VW engineer, in September. Mr Liang agreed to co-operate with US government investigators in return for leniency. In January, the US government indicted Schmidt and five other VW executives and managers, but the others are thought to be in Germany and have not been arrested.

Mr Schmidt was head of the company’s engineering and environmental office in the US from 2012 to early 2015. US regulators first queried VW about emissions irregularities in mid-2014. The compliance office that Mr Schmidt led responded with “false and fraudulent statements” to make the discrepancies between cars’ emissions in the laboratory and on the road appear as if they were “innocent mechanical and technological problems,” according to US prosecutors.

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German party hit by ‘dieselgate’ whitewash

The Financial Times  / 

Regional SPD leader checked with VW before speech on emissions scandal

Germany’s main centre-left party has suffered a political setback ahead of next month’s challenge to Chancellor Angela Merkel in parliamentary elections after one of its senior members admitted consulting Volkswagen over a planned speech when the “dieselgate” scandal first broke.

Stephan Weil, the Social Democrat chief minister of Lower Saxony, one of Germany’s largest states, showed the draft of a parliamentary address in October 2015 to Volkswagen management.

He said he only sought to “check legal matters and the accuracy of facts” regarding allegations that VW had intentionally manipulated emissions tests in its diesel engines. Weil denied a report in the Bild newspaper that the speech had been whitewashed by Volkswagen executives, saying he had stuck by his “hard criticism of VW’s behaviour”.

Weil is closely tied to VW, which is based in Lower Saxony and one-fifth owned by the regional government. He sits on the company’s supervisory board, as have most of his predecessors in office.

When the CDU was in power in the region from 2003-13, its representatives sat on the VW supervisory board, including David McAllister, a close ally of Ms Merkel, and Christian Wulff, later Germany’s president.

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Volkswagen Group launches trade-in incentive for Euro 1 - Euro 4 diesels; pan-European software update for Euro 5 and some Euro 6 diesels

Green car Congress  /  August 5, 2017

Embracing the outcome of the German National Diesel Forum earlier this week (earlier post), the Volkswagen Group announced that it will offer a trade-in incentive for Euro 1 - Euro 4 diesel models which will apply across all brands in the Group. In addition, the software update for Euro 5 and some Euro 6 diesel vehicles will be available throughout Europe and not just in Germany.

The incentive is currently being prepared by the Group’s Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Porsche and Volkswagen Commercial vehicles brands and will be on offer soon.

With the incentive to trade in their vehicles we are giving our customers strong motivation to switch to a modern, more environmentally compatible vehicle powered by an internal combustion engine or an alternative drivetrain technology. This incentive can be implemented quickly and will have a swift, quantifiable and sustained effect on significantly reducing NO_x emissions and significantly improving air quality.

—Matthias Müller, Volkswagen AG CEO

In Germany, the Volkswagen Group will install a software update on approximately four million Euro 5 and some Euro 6 diesel vehicles in total as agreed in order to reduce NO_x emission levels. This figure also includes the approximately 2.5 million vehicles already being recalled, of which more than 70% have already been refitted.

In addition, the Volkswagen Group will be offering the software update to its diesel customers throughout Europe. As a result, NO_x emissions from Euro 5 and some Euro 6 diesel vehicles currently on the market can be reduced by an average 25 to 30%.

Furthermore, the Volkswagen Group will contribute to the €500 million “sustainable mobility fund for cities”. The auto industry and the Federal government will each contribute €250 million. The Volkswagen Group’s contribution to the fund will be proportionate to its market share in Germany and will therefore represent a substantial amount.

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German state premier on defensive over close ties with VW

Reuters  / August 7, 2017

BERLIN -- Stephan Weil, the premier of Germany's Lower Saxony, which owns a fifth of Volkswagen Group's voting rights, rejected as groundless a newspaper report that said he softened a speech critical of the automaker in the diesel-emissions scandal at VW's request.

Weil, already facing an unexpected election after the defection of a member of his ruling coalition to Chancellor Angela Merkel's conservatives, is under fire for what some see as a too-cozy relationship with the company.

The mass circulation newspaper Bild am Sonntag on Sunday quoted a VW employee as saying that the company "rewrote and watered down" an October 2015 speech by Weil to the state legislature about the diesel scandal after Weil shared a draft with the company.

"This was no fact check," the paper quoted the employee as saying.

Weil, a member of VW's supervisory board, called VW "a pearl of German industry" in the speech, but other passages were removed, the newspaper reported, including one in which he said company officials should be held accountable "regardless of their place in the hierarchy."

"The allegations being made are completely unfounded," Weil told reporters on Sunday. "The core of the text remained completely unchanged."

Weil said he had asked VW to check the speech for legal and factual issues given the gravity of the situation facing the company, which was in discussions at the time with U.S. officials about rigged emissions tests.

He said some suggested changes were adopted, while others were not. His office released two versions of the text that verified his statement.

Weil said his speech remained sharply critical of VW leadership for not disclosing the emissions issue until a year after it first began discussions with U.S. officials.

His office said there had been no consultation about speeches or remarks with VW for several months because the "situation between VW and the U.S. authorities has now been cleared up."

A VW spokesman said it was common practice for supervisory board members to coordinate statements about corporate issues with the company.

"Every member of the supervisory board has an obligation with regard to the company's interests and, based on the stock corporation act, has to adhere to the confidentiality interests of the company," the spokesman said in emailed comments.

VW executive Oliver Schmidt pleaded guilty last week in a U.S. court in connection with the emissions scandal that has cost the German automaker as much as $25 billion.

Close ties

The controversy about Weil's speech erupted amid renewed questions about close ties between German politicians and German carmakers, and whether they prevented the German government from acting sooner to address the widening emissions scandal.

Critics have also attacked the outcome of last week's diesel summit, saying that the German government should have insisted on harsher steps to rein in diesel emissions, but was swayed by industry to adopt less onerous measures.

Bild am Sonntag published thumbnail portraits of six German politicians, including Foreign Minister Sigmar Gabriel, who have or have had in the past consulting agreements or other jobs with VW, Daimler or other bodies associated with the car industry.

They included Daimler's chief lobbyist Eckart von Klaeden, a conservative politician who worked under Chancellor Angela Merkel in the chancellery until 2013. His abrupt switch to the Mercedes manufacturer prompted an investigation by Berlin prosecutors and new rules on "cooling off" periods.

Thomas Steg, now VW's top lobbyist, previously served as spokesman for two German chancellors.

Matthias Wissmann, who served as German transport minister from 1993 to 1998, has served as president of the VDA auto industry lobby since 2007.

Cem Ozdemir, leader of the pro-environment Greens party, said the "conflation of politics and automotive industry" was damaging to Germany's reputation and posed a "threat to the foundation of our market economy."

[kscarbel2]

VW boosts 2018 warranties to 6 years/72,000 miles

Automotive News  /  September 29, 2017

DETROIT -- Volkswagen, seeking to speed its recovery from a diesel emissions cheating scandal, will offer a lineup of 2018 cars and crossovers in the U.S. with expanded warranties that are twice the duration of those at most competitors.

The expansion to a six-year/72,000-mile bumper-to-bumper transferable warranty for each car and crossover in the brand's 2018 U.S. lineup -- except the battery electric e-Golf -- brings VW's other vehicle warranties in line with those of the newly launched 2018 Tiguan and Atlas crossovers. In April, VW said it planned to introduce the Atlas and three-row Tiguan with the expanded warranty to boost customer confidence in the brand as it entered new segments in the U.S.

Unlike most competitors, Volkswagen's "People First" warranty is transferable to subsequent owners for up to six years from the date of the vehicle's original purchase or 72,000 miles.

The plug-in electric Volkswagen e-Golf, the one model exempt from the new warranty, will retain traditional three-year/36,000-mile bumper-to-bumper coverage, with powertrain components warrantied for five years/60,000 miles. The e-Golf's battery pack also carries its own warranty covering loss of more than 30 percent of its charging capacity for up to eight years/100,000 miles, Volkswagen said in a statement Friday.

The move to offer expanded warranties that are double the industry standard three-year/36,000-mile bumper-to-bumper is likely to give Volkswagen -- which has a car-centric lineup in the U.S. -- an edge against competitors amid waning consumer interest in traditional sedans, coupes and hatchbacks. It also comes as the brand attempts to restore market share -- and its reputation -- from the fallout of diesel emissions violations.

The VW brand's U.S. sales skidded 12 consecutive months starting in Nov. 2015 after the company acknowledged skirting U.S. diesel emissions rules. The brand's U.S. sales have risen 6.4 percent in 2017 to 220,344 through August, while the overall market is on pace to decline for the first time after seven straight years of gains.

Analysts applauded VW's expanded warranty coverage.

“It’s an excellent move for them,” said Finbarr O’Neill, president of J.D. Power and Associates. In 1998, early in his tenure as CEO of Hyundai Motor America, O’Neill instituted a five-year bumper-to-bumper/10-year powertrain warranty called the Hyundai Advantage. At the time, Hyundai was battling a reputation for poor quality. Within four years, Hyundai U.S. sales more than quadrupled.

“This is less about the diesel crisis and more about removing any reservations that consumers might have” about buying a VW, O’Neill told Automotive News. “Essentially, they are putting their money where their mouth is, and consumers like that.”

Michelle Krebs, executive analyst for Autotrader, said the expanded warranty is also an important tool to help consumers address new-vehicle affordability.

"To keep monthly payments down, consumers are stretching auto loan terms," said Krebs. "The Volkswagen warranty extends along with those loans to help the first buyer -- and even the second buyer of a VW -- save repair costs.”

Rebuilding block

Hinrich Woebcken, CEO of Volkswagen Group of America, said the expanded warranty will play a key role in helping rebuild the VW brand.

“Our future success depends on how well we listen and respond to our customers to rebuild their love for Volkswagen,” Woebcken said during a press briefing at a dealership in Dearborn, Mich., on Friday.

Woebcken said the VW brand was at a “fundamental turning point” and laid out several goals for 2018 that include “rebuilding the trust of our customers, dealers, and employees."

Michael DiFeo, chairman of the Volkswagen National Dealer Advisory Council and dealer principal of Linden Volkswagen in Roselle, N.J., said he and other VW dealers have already seen the impacts of the expanded warranty offerings on consumers in their consideration of the Atlas and, more recently, the three-row Tiguan.

"Having a best-in-class warranty is impacting their buying decisions," DiFeo said. Bringing the expanded warranty to the remainder of the lineup can only help sell vehicles, he said.

"The perceived cost of ownership of a Volkswagen has always been one of the reasons why people have not considered the brand, and I think having the [six-year/72,000-mile] warranty addresses that concern head-on," DiFeo said.

As for Volkswagen dealerships, the additional warranty "will be beneficial for our service departments. Over time, we should see an increase in consumer business," DiFeo said.

[Maxidyne]

So how are the dealers supposed to move the 2017s with half the bumper to bumper warranty? Was by a VW dealer the other day and they were offering free service to 6 years/72,000 miles on the 2017s! Being I just bought a new 2015 TDI with 11 year/ 162,000 mile warranty on the engine, fuel, and emissions systems a mere 6/72 warranty doesn't impress me!

[kscarbel2]

.

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[kscarbel2]

Mystery: Did Audi ship thousands of cars with same VIN? And why?

Sven Gustafson, Autoblog  /  August 24, 2017

Prosecutors investigating Audi's involvement in the Dieselgate scandal have stumbled onto a stranger mystery: Investigators found documents indicating that thousands of vehicles exported to China, Korea and Japan were stamped with identical vehicle identification numbers.

The discovery, reported by the German business journal Handelsblatt, was made when investigators searched Audi's audit department for documents related to the Dieselgate scandal during a wide-ranging raid in March. It came after the German Transport Ministry accused the company of cheating on emissions testing for 24,000 Audi A7 and A8 diesels. According to the report, Audi's auditors had the documents about duplicate VINs because they were assessing a "risk of discovery."

Audi professed ignorance, with a spokesman saying, "We are not aware of the fact the VIN numbers have been issued more than once."

VIN numbers are supposed to be unique to each vehicle, with 17 digits and capital letters that identify that vehicle's DNA — including features such as where a car was built, the model year and engine specifications. They're used to track recalls, ownership histories, registrations and thefts, among other things.

Under EU and German laws, VIN numbers are supposed to remain unduplicated for at least 30 years.

Investigators told Handelsblatt they were puzzled as to why Audi would produce vehicles under common VIN numbers.

Audi, a division of Volkswagen Group, in June issued a recall for around 24,000 A7 and A8 models built between 2009 and 2013. It later said it would update engine software blamed for the emissions cheating scandal on up to 850,000 diesel cars.

But the VIN mystery adds a new wrinkle.

[kscarbel2]

The People First Warranty | Volkswagen “Rain” Commercial

Volkswagen USA  /  October 13, 2017

.

 

[kscarbel2]

FCA hopes to win approval for diesel fix by spring

Reuters  /  November 8, 2017

WASHINGTON -- Fiat Chrysler Automobiles NV said on Wednesday it hopes to reach an agreement over a fix for vehicles linked to alleged U.S. diesel emissions violations by next spring if not earlier.

In May, the Justice Department sued Fiat Chrysler, accusing the company of illegally using software that led to excess emissions in nearly 104,000 diesel vehicles sold in the United States since 2014. It also faces numerous lawsuits from owners of those vehicles.

Company lawyer Robert Giuffra said at a court hearing in San Francisco the company expects to win U.S. approval of its proposed fix for the emissions issue by the end of March or early April. Testing is expected to last about three months and start later this month, he said.

In July, Fiat Chrysler won approval from federal and California regulators to sell 2017 diesel vehicles after it came under scrutiny for alleged excess emissions in older diesel models.

Giuffra has said the company hopes to be able to use updated emissions software in the 2017 vehicles to address concerns over 2014-16 Fiat Chrysler diesel vehicles. A court mediator, Ken Feinberg, on Wednesday met with the company, government and lawyers for owners to talk about the testing plans.

Giuffra has said the engine and emissions controls were identical in the older vehicles to those in the 2017 models.

Regulators have said that the older Fiat Chrysler diesel vehicles had undisclosed emissions controls that allowed vehicles to emit excess pollution during normal driving.

The company has denied wrongdoing, saying there was never an attempt to create software to cheat emissions rules.

Fiat Chrysler's emissions case came after Volkswagen AG's diesel emissions scandal prompted increased industry scrutiny. The German automaker pleaded guilty in March to skirting emissions tests for vehicles it sold since 2009.

Volkswagen has agreed to spend up to $25 billion to address claims from U.S. owners, environmental regulators, states and dealers, and offered to buy back about 500,000 polluting U.S. vehicles.

Regulators are also investigating emissions in Daimler AG Mercedes-Benz diesel vehicles, but have yet to take any action. Daimler AG withdrew a request for approval to sell its 2017 Mercedes-Benz diesel models in the United States in May.

[grayhair]

17 hours ago, kscarbel2 said:

from Reuters..."to address concerns over 2014-16 Fiat Chrysler diesel vehicles. A court mediator, Ken Feinberg, on Wednesday met with the company, government and lawyers for owners to talk about the testing plans.

Giuffra has said the engine and emissions controls were identical in the older vehicles to those in the 2017 models.

Regulators have said that the older Fiat Chrysler diesel vehicles had undisclosed emissions controls that allowed vehicles to emit excess pollution during normal driving."

The company has denied wrongdoing, saying there was never an attempt to create software to cheat emissions rules.  (Of course they said...)

So really there are two questions for the U.S. consumer:   a) Did you buy a Dodge?   - and  b ) Have you learned anything?

Edited November 11, 2017 by grayhair

[kscarbel2]

The VM Motori diesel is superb. But, as was VW, always financially strapped FCA was using the lowest cost means possible to (allegedly) have it meet emissions standards.

[Dirtymilkman]

11 hours ago, grayhair said:

So really there are two questions for the U.S. consumer:   a) Did you buy a Dodge?   - and  b ) Have you learned anything?

We have a Jeep Grand Cherokee diesel. The only good thing about it is the diesel engine. The rest of the vehicle is garbage. Everything gives trouble. I mean everything. From the shocks to the electronics, to the factory tires they used. It's a sub par built vehicle that they tried to make high class. The last bcm update took 7 hours to complete. 

[kscarbel2]

1 hour ago, Dirtymilkman said:

We have a Jeep Grand Cherokee diesel. The only good thing about it is the diesel engine. The rest of the vehicle is garbage. Everything gives trouble. I mean everything. From the shocks to the electronics, to the factory tires they used. It's a sub par built vehicle that they tried to make high class. The last bcm update took 7 hours to complete. 

You and I both know your remark is dead on Mark. Now tell them how much you paid, the year, and what it's depreciated to already.

[Dirtymilkman]

3 hours ago, kscarbel2 said:

You and I both know your remark is dead on Mark. Now tell them how much you paid, the year, and what it's depreciated to already.

Haha. It's terrible. We always had a Denali Yukon for Ma to run around in. LOVED them. When GM came out with their last new body style it list for over $75,000. We saved 20 grand trading for the Jeep. And it's the "fancy" Jeep. The only reason it has any bit of resale is the motor. But we'll lose our ass on this thing. Definitely going back to a Denali

[kscarbel2]

VW bosses coached me to lie, jailed manager tells U.S. judge ahead of sentencing

Bloomberg-Reuters  /  December 3, 2017

Volkswagen Group manager Oliver Schmidt, who is scheduled to be sentenced Thursday for violating U.S. environmental regulations, told a judge he was coached by company executives to lie about diesel emissions in a meeting with a U.S. regulator two years ago.

Schmidt has been in custody since his arrest in January after pleading guilty on Aug. 4 to conspiracy and violating the U.S. Clean Air Act. He is scheduled to be sentenced by U.S. District Judge Sean Cox in Detroit federal court and faces up to seven years in prison.

In a letter to the judge last week, Schmidt, former general manager of Volkswagen’s U.S. Environment and Engineering Office, said he first learned about the company’s emissions-testing evasion scheme in the summer of 2015.

Schmidt said he was given "a script, or talking points" approved by VW management and "high-ranking lawyers" to follow when he met with a California environmental official, Alberto Ayala, on Aug. 5, 2015.

"Regrettably, I agreed to follow it," Schmidt said. "In hindsight, I should have never agreed to meet with Dr. Ayala on that day. Or, better yet, I should have gone to that meeting, ignored the instructions given to me" and admitted "there was a defeat device in VW diesel engine vehicles and that VW had been cheating for almost a decade."

Schmidt told the judge he feels "misused" by VW, Bild newspaper reported. "I must say that I feel misused by my own company in the diesel scandal or 'Dieselgate,' Schmidt wrote.

VW spokesman Nicolai Laude declined to comment.

Eight executives

Schmidt, a 48-year-old German national, described himself as a small player in the automaker’s emission’s cheating scandal in February, when he asked a judge to release him from a maximum-security prison. His request was denied.

In August, veteran VW engineer James Liang was sentenced to 40 months in prison for his role in helping VW to cheat U.S. emissions tests. Liang was the first person prosecuted in the scandal.

Liang and Schmidt are among eight VW executives criminally charged for their alleged roles in the scheme. The charges followed VW’s admission in September 2015 that about 11 million diesel vehicles worldwide were fitted with so-called defeat devices that helped them pass emissions testing. An investigation is ongoing in Germany and against individuals in the U.S.

After being informed of the existence of the emissions software in the summer of 2015, according to his guilty plea, Schmidt conspired with other executives to avoid disclosing "intentional cheating" by the automaker in a bid to seek regulatory approval for its model 2016 VW 2.0-liter diesels.

The case is U.S. v. Schmidt, 16-cr-20394, U.S. District Court, Eastern District of Michigan (Detroit).

[kscarbel2]

Ex-VW exec Schmidt gets max 7 years, $400,000 fine for U.S. emissions violations

Larry P. Vellequette  /  December 6, 2017

DETROIT -- Oliver Schmidt, the former high-ranking executive who spearheaded Volkswagen's multiyear efforts keep its conspiracy to cheat on diesel emissions a secret from U.S. regulators and failed to cooperate with investigators, received the maximum sentence possible Wednesday from a federal judge in Detroit.

Schmidt, 48, was sentenced to seven years in prison and a $400,000 fine on Wednesday by U.S. District Judge Sean Cox. In August, he pleaded guilty to two felony charges of conspiracy to defraud the United States and violating the Clean Air Act. A third charge of aiding and abetting wire fraud was rolled into the conspiracy charge in a plea agreement.

Cox agreed to allow Schmidt to continue to serve his sentence at the federal penitentiary in Milan, Michigan, where he has been behind bars since March. As part of the sentence, Schmidt will get credit for the nearly 11 months that he has so far been incarcerated.

Schmidt, the former general manager of Volkswagen's U.S. Environment and Engineering Office in suburban Detroit, has been in custody since his arrest in January while attempting to return to Germany from a family vacation in Florida. His efforts to secure release on bail prior to his plea were rebuffed by Cox, who called him a "flight risk," a decision that was later upheld on appeal.

Schmidt is one of eight current or former Volkswagen engineers or executives charged in Volkswagen's global conspiracy to cheat on diesel emissions. However, only one other Volkswagen employee, engineer James Liang, has thus far faced justice.

Liang, who, unlike Schmidt, cooperated early on with investigators, was sentenced by Cox in late August to 40 months in prison -- longer than was sought by prosecutors -- in part, Cox said, because he was aware that he had to sentence Schmidt this month.

'Key conspirator'

Wednesday, Cox said Schmidt was a central figure to the conspiracy.

"In my opinion ... you are a key conspirator responsible for the cover-up in the United States of this massive fraud perpetrated on the people of the United States," the judge said. "I'm sure, based on common sense, that you viewed this cover-up as your opportunity to shine. That your goal was to impress senior management to fix this problem. .. to make yourself look better, to increase your opportunities to climb the corporate ladder at VW."

Cox said Schmidt was "a significant player" in VW's actions, which undermined the trust between buyer and seller in the U.S. economy.

"You knowingly misled and lied to government officials. You actively participated in the destruction of evidence. You saw this massive cover-up as an opportunity ... to advance your career at VW. This conspiracy, which you were a key part of, in particular the cover-up, is a very troubling crime against our economic system. It attacks and destroys the very foundation of our economic system, the trust by the buyer of our economic system," Cox said.

'I ... blame myself'

Before his sentence, a nervous, tearful Schmidt choked up several times while reading a letter to the court accepting responsibility for his actions. He thanked his family and friends for supporting him, and said he has not been able to sleep at all while awaiting his sentencing. He also admitted that he had tried to use his personal relationships in the U.S. to keep regulators in the dark.

"For the disruption of my life, I only have to blame myself," Schmidt said. "I justified my decisions by telling myself that I was obliged to speak for my superiors. The man that stands before you today no longer believes that."

Schmidt admitted that his remorse was of little use now: "I'm deeply sorry for the wrongs I've committed, and I'm as ready as I'll ever be to accept my punishment now."

In a letter to Cox last week, Schmidt said he first learned about the company's emissions-testing evasion scheme in summer 2015. Schmidt said he was given "a script, or talking points" approved by VW management and "high-ranking lawyers" to follow when he met with California environmental official Alberto Ayala on Aug. 5, 2015, Bloomberg reported.

"Regrettably, I agreed to follow it," Schmidt wrote. "In hindsight, I should have never agreed to meet with Dr. Ayala on that day. Or, better yet, I should have gone to that meeting, ignored the instructions given to me" and admitted "there was a defeat device in VW diesel engine vehicles and that VW had been cheating for almost a decade."

A mounting conspiracy

But Schmidt's own emails -- recovered prior to his surprise arrest in January -- point to his sounding alarm bells within the company up to a year earlier. In April 2014, Schmidt was notified that independent testing at West Virginia University had discovered that VW diesel vehicle emissions vastly exceeded federal standards.

Investigators say he sounded the alarm bells within the automaker the same day, writing to a colleague: "It should first be decided whether we are honest. If we are not honest, everything stays as it is."

More than six weeks later in 2014, Schmidt took his growing problem up the company ladder, writing an email to the head of Volkswagen of America noting the economic risks to the company, and the possibility of an indictment.

Defense: Following orders

In a pre-sentence filing, Schmidt had sought a sentence of 40 months of supervised release and a $100,000 fine.

Before the sentencing, Schmidt's attorney, David DuMouchel, argued that his client's sentence should be less than that of Liang, saying that Liang had been involved in the conspiracy from the beginning in 2006 and through the whole conspiracy, while Schmidt was only involved for two months "at the very end."

DuMouchel argued that his client was following orders from Volkswagen to continue to conceal the presence of "defeat device" software from regulators, but said his client admits he did wrong.

"Mr. Schmidt was asked, at the very end, to conceal from regulators the existence of the defeat device. And he did it," DuMouchel said, adding that his client now wishes that he had not lied to California regulators in August 2015, which he implied was Schmidt's worst day. "I wouldn't want anybody to judge me on my worst day."

But prosecutor Ben Singer argued that Schmidt was key to keeping the conspiracy under wraps, that he deleted evidence, and that he had directly briefed VW CEO Martin Winterkorn in July 2015 about the cover-up and was ordered to lie to keep the defeat device secret, and carried out that order.

"He was in the room, and every time he was in the room, he chose to lie. And that's how this crime happened," Singer said.

Scandal fallout

Volkswagen earlier this year pleaded guilty before Cox to a felony for its diesel emissions scandal, which has now cost the automaker as much as $30 billion.

Volkswagen has attempted to put its diesel scandal behind it as much as possible.

It has largely abandoned its diesel strategy globally in favor of electric vehicles, and has says it continues to cooperate with U.S. investigators to seek those responsible for the decisions to cheat on diesel emissions.

Asked to comment on Schmidt's sentencing, a Volkswagen spokeswoman emailed the following statement: "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 individual cases."

However, in August, global Volkswagen brand head Herbert Diess told Automotive News that the diesel scandal is now part of the brand's checkered history.

"It was a very big scandal," Diess said. "It's something we have to live with."

.