FILE – This Feb. 14, 2013, file photo, shows the Volkswagen logo on the grill of a Volkswagen on display in Pittsburgh.
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A longtime Volkswagen engineer pleaded guilty Friday in federal court to charges he helped design and implement a software system that enabled the German automaker’s diesel engines to defeat emissions tests.
In a first criminal charge in Dieselgate scandal, Volkswagen engineer Liang pleaded guilty to USA federal charges.
The engineer was appearing in U.S. District Court in Detroit on Friday and is expected to enter into a plea agreement that includes his cooperation with the government in its ongoing investigation, a department spokesman said.
Documents released Friday by the Justice Department made clear that Liang didn’t act alone, frequently mentioning “co-conspirators” within VW who worked alongside him on the development of the engine, the test-cheating software and the subsequent effort to keep it hidden from regulators. Regulators discovered the devices – which permit the cars to emit up to 40 times more nitrogen oxide than is allowed under federal law – a year ago.
Liang pleaded guilty to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act.
In 2006 he was part of a group that started to design a new “EA 189” diesel engine for sale in the U.S. When they realized they couldn’t meet stricter government emissions standards, they designed and implemented software to cheat the emissions tests. The case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of MI. His sentencing is scheduled for January 11. The judge said that guidelines call for Liang to serve five years in prison. He might also have to pay a fine of up to $250,000.
VW declined to comment on Liang’s indictment and said the company continues to cooperate with the Justice Department. It was the largest auto-related consumer class-action settlement in USA history.
As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met USA emissions standards and complied with the Clean Air Act, according to the plea agreement. Within VW, it was referred to as the USA ’07 project. Liang admitted that he used the defeat device while working on the EA 189 and assisted in making the defeat device work.
As vehicles equipped with the cheat software aged, they saw elevated rates of warranty claims related to the emissions control, according to the indictment.
In one 2007 meeting with government officials in Ann Arbor, Michigan, Liang participated as his co-conspirators misrepresented that VW’s diesel vehicles complied with US emissions standards, according to the plea agreement.
The plea agreement describes a conspiracy that spans almost 10 years.
The indictment says that in May 2008 Liang transferred from Volkswagen headquarters in Germany to the U.S.to help oversee the launch of the new “clean diesel” models. The software was created to recognize when the cars were being tested on a treadmill-like device called a dynamometer. They also hid the defeat device’s existence from USA regulators during these meetings.
As a first step, VW offered a new “optimized” software update that was supposed to address the high emissions.
According to the indictment, the co-conspirators included “current and former VW employees and others”.
His job title in the United States was “Leader of Diesel Competence”, although he still reported to VW officials in Germany.
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The indictment said an employee in June wrote, “If the Gen 1 goes onto the roller at the CARB, then we’ll have nothing more to laugh about!”
