Volkswagen emissions scandal: 40-month prison sentence to former engineer
What's the story
The US District Court in Detroit has sentenced a former Volkswagen engineer, James Liang, to 40 months in prison for helping the German automaker develop a device for cars to cheat the US emissions tests. Judge Sean Cox also ordered 63-year-old Liang to pay a $200,000 penalty. Liang is the first to be prosecuted in one of the biggest automotive scandals in the history.
Harsh Punishment
Judge Cox sends message to others in automotive industry
Liang pleaded guilty to conspiracy in 2016 and cooperated with federal prosecutors for the investigation into the case. So, his prison sentence was reduced to 40 months, less than the statutory maximum time; prosecutors wanted the sentence to be reduced to three years and penalty to $20,000. However, Cox opted for a harsher punishment saying the verdict would deter others from such deceitful schemes.
Prosecutors
Liang didn't mastermind the plan: Prosecutors
The prosecutors acknowledged that James Liang had not masterminded the plan to cheat in the emissions tests in a memorandum submitted to the federal court. However, they argued that Liang "abdicated" his responsibility to speak out about the conspiracy, which would have been the right thing to do. Liang, who is still a Volkswagen employee but not an engineer, can appeal the sentence.
Quote
Prosecutors submitted a memo to court last week
The prosecutors wrote: "Unless individual actors are also punished, future corporate employees and contractors may be tempted to justify their criminal behavior as just 'doing their jobs' or 'following orders'. Sentencing Liang to a three-year term of imprisonment will deter others from making similar rationalizations."
Executives
Misleading US regulators and violating clean air laws
Liang is among the eight current and former Volkswagen executives, including those in higher ranks, who are charged by the US prosecutors in connection with the emissions cheating case. Another executive, Oliver Schmidt, pleaded guilty earlier this month; his sentence is scheduled for 6 December in Detroit. Schmidt could be awarded a seven-year sentence; he may have to pay the penalty of between $40,000-400,000.
Scandal
About the Volkswagen emissions scandal
The scandal surfaced in Sep'15 after the US Environmental Protection Agency issued notice to Volkswagen for violating the Clean Air Act. Volkswagen reportedly used a device in its diesel cars to deceive American and European environmental regulators during 2006-15; it sold 11 million such cars globally. West Virginia University's study showed the device allowed cars to perform better in tests compared to road performance.
Information
Volkswagen pleads guilty
In Mar'17, Volkswagen pleaded guilty to three felony charges. The German automaker also agreed to spend $25 billion in the US to address claims from the regulators and owners. It had offered to buy back about 500,000 of the cars.