Volkswagen ‘Dieselgate’ plaintiffs – in the largest motor vehicle scandal in history – agreed to a $10 billion settlement on July 11th in which Volkswagen pleaded guilty to using a sophisticated software device on its diesel-fuel cars that allowed VW to falsify emissions tests.
Approximately 550,000 VWs sold in the U.S. since 2008 with 2.0 liter engines–and 11 million vehicles sold worldwide–spewed 40 times more nitric oxide while driving than during emissions testing, according to Consumer Reports.
The 9th Circuit Court of Appeals upheld a lower court’s 2016 decision, finding that the settlement was fully justified, the Insurance Journal reports.
The court found that the “settlement delivered tangible, substantial benefits to class members, seemingly the equivalent of – or superior to – those obtainable after successful litigation, and was arrived at after a [monumental] effort.”
“VW must pay plaintiffs between $5,100 and $10,000 in damages plus the estimated value of their VW,” the Insurance Journal reports.
Recall models include the VW Jetta, Beetle, Golf and Passat.
71,000 Die Annually in Europe
European governments, concerned by rising carbon emissions, began converting to diesel-powered engines at the beginning of the 21st century, as they were thought to emit less CO2 into the atmosphere than gas-powered vehicles.
However, in 2012, the first major study found that diesel-powered vehicles were belching out nitrogen oxides, dioxides and particulate matter at an alarming rate.
The European Environmental Agency found that nitrogen dioxide (NO2) from diesel fumes had caused about 71,000 premature deaths across Europe every year, according to The Guardian.
“Air pollution currently kills 3.3 million people every year—more than HIV, malaria and influenza combined—with emissions from diesel engines among the worst culprits,” The Guardian reports, as Europe tries to reverse course and pull diesel-powered vehicles off the road.
The World Health Organization has declared diesel exhaust a carcinogenic material that causes lung cancer, labeling it as dangerous as asbestos and mustard gas.
“Diesel fuel has been connected to a range of serious conditions including increased asthma attacks and other respiratory illnesses that can be serious enough to send people to the hospital,” writes Consumer Reports.
Conspiracy and Obstruction of Justice
According to the EPA, the Department of Justice resolved a criminal case against Volkswagen with a plea agreement consisting of: “conspiracy, obstruction of justice, and entry of goods by false statement.”
Meanwhile, the U.S. Customs and Border Protection resolved civil fraud claims with Volkswagen arising from the illegal importation of affected vehicles.
The May, 2018 indictment of VW CEO, Martin Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW, according to the EPA.
A Dynamometer or the Road?
In March 2017, VW pleaded guilty to criminal charges that it deceived the EPA and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests.
The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly, the EPA said.
As part of its plea agreement with the Department of Justice, Volkswagen paid a criminal penalty of $2.8 billion.
Winterkorn served as VW’s chairman from January 2007 until September 2015.
His indictment alleged that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015.
The indictment further charged that Winterkorn–after having been clearly informed of the emissions cheating–agreed with other senior VW executives to continue to deceive U.S. regulators, the EPA said.
Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy, and are currently serving sentences of 84 months and 40 months in prison, respectively, after being convicted by U.S. District Judge Sean F. Cox of the Eastern District of Michigan.
Electrification: Buzzword for the Future
While most Americans prefer gas-powered vehicles over diesel, the time will come when neither fossil fuel will be used, as it will likely be eclipsed by battery-powered vehicles.
“There is no question that the car industry is undergoing a radical change, the BBC reported September, 2017.
“At this year’s Frankfurt Motor Show – currently under way in the German city – the buzzword throughout the cavernous exhibition halls has been ‘electrification’.
“The day before the show, for example, Volkswagen said it would build electrified versions of every model in its range – including those sold under the Audi, Skoda, Seat and Porsche brands – by 2030.
“The same evening, Mercedes’ parent company Daimler said it would have electrified versions of its own models by 2022, “the BBC said.
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