A Volkswagen spokeswoman declined to comment on Liang’s indictment, but said the company “is continuing to cooperate with the U.S. Department of Justice”. He is now expected to help the government target other VW employees involved in the scam.
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VW has already agreed to spend up to 16.5 billion dollars (14.7 billion euros) to address environmental, state and owner claims in the United States.
The indictment says Liang worked as a diesel development engineer in Wolfsburg, Germany form 1983 to 2008, where he played a big role in developing the AE 189 2.0-liter diesel engine, an engine that was expected was to pass strict USA emissions regulations.
Liang admitted to attending meetings between personnel from VW AG and its US operation and officials from the EPA and California’s Air Resources Board for certifications from the regulators to sell the diesels in the USA market, the Justice Department said. The employees then tried to cover things up when it became apparent regulators cottoned on to the scheme. He was head of Diesel Competence in Volkswagen’s USA arm, but nonetheless reported to superiors based in Germany.
Volkswagen engineer admits to his part in a conspiracy to cheat USA emissions tests. He attended meetings with the Environmental Protection Agency to discuss certifying VW diesel vehicles for the USA market – meetings at which prosecutors say Liang and his co-conspirators “continued to falsely and fraudulently certify” that the cars met emissions standards.
The engineer, James Liang, agreed to cooperate in the continuing USA investigation, the official said.
Volkswagen has admitted to installing software on about 500,000 two-litre diesel engines in VW and Audi models in the United States that turned pollution controls on during government tests and turned them off while on the road.
“I knew that VW did not disclose defeat device to regulators in order to get certification”, Liang said during a court hearing.
Those engines went on sale in beginning in the 2009 model year.
The office is part of the massive federal investigation that is also being led by the Justice Department’s Environment and Natural Resources Division.
Liang and his co-conspirators updated the software in 2014.
Friday’s plea deal suggests the Justice Department envisions a different approach this time, with Mr. Liang helping prosecutors pursue other individuals at Volkswagen. In German, that employee wrote: “The key word “creativity’ would be helpful here”.
Liang “is coming here to Detroit today to accept responsibility for his actions”, his lawyer, Daniel Nixon, told Bloomberg. As part of his plea agreement, Liang will be cooperating with investigators, something that could reduce his sentence. Germany and South Korea also are conducting criminal probes of Volkswagen.
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“The guilty plea by Volkswagen engineer James Liang begs the question: will there be other indictments in the case?”
