VW executives knew about emissions cheating
two months before the scandal broke, but chose
not to tell US regulators, according to court
papers.
The bosses involved include Oliver Schmidt, who
was in charge of VW's US environmental
regulatory compliance office from 2012 until
March 2015.
He was arrested on Saturday on charges that he
took part in a conspiracy to defraud the US and
VW customers.
Volkswagen said it could not comment on an
"ongoing" legal matter.
A complaint to the US District Court for the
Eastern District of Michigan, filed by the Federal
Bureau of Investigation (FBI) against VW at the
end of last year, accuses the carmaker of
deliberately misleading regulators about cheating
US pollution tests by means of so-called "defeat
devices".
The complaint said Mr Schmidt and others gave a
presentation to VW's executive management on
or about 27 July 2015.
"In the presentation, VW employees assured VW
executive management that US regulators were
not aware of the defeat device," the complaint
said.
"Rather than advocate for disclosure of the defeat
device to US regulators, VW executive
management authorised its continued
concealment."
Separately, VW owners in the UK are seeking
several thousand pounds in compensation over
the scandal.
Deceit
By the summer of 2015, the complaint from the
FBI said US regulators knew that emissions from
VW diesel vehicles were "substantially higher"
when they were being driven on the road than
when being tested.
The affidavit said Mr Schmidt - who was the
general manager in charge of VW's Environmental
and Engineering Office between 2012 and March
2015 - knew the discrepancy was because VW
had "intentionally installed software in the diesel
vehicles it sold in the US from 2009 through 2015
designed to detect and cheat US emissions
tests".
In 2015, Mr Schmidt travelled to the US to talk to
US regulators about the discrepancy. The filing
says that during these talks, Mr Schmidt
"intended to, and did, deceive and mislead US
regulators" by saying the difference in the
emission levels was not because of deliberate
cheating.
The affidavit cites two VW employees who said
that in a presentation to VW's executive
management in Germany, "VW employees
[including Mr Schmidt] assured VW executive
management that US regulators were not aware
of the defeat devices - that is the engines' ability
to distinguish between the dynamometer and
road mode.
"Rather than advocate for disclosure of the defeat
device to US regulators, VW executive
management authorised its continued
concealment. "
VW said it would not be "appropriate to comment
on any ongoing investigations or to discuss
personnel matters".
"Volkswagen continues to cooperate with the
Department of Justice as we work to resolve
remaining matters in the United States," it said.
Group litigation
Meanwhile, in the UK, lawyers said 10,000 VW
owners had already expressed an interest in suing
VW. They estimated that owners could get
"several thousand" pounds in compensation.
Harcus Sinclair is applying for a group litigation
order - which is similar to a US class action
lawsuit - in the High Court later this month.
The legal action is aimed at securing
compensation for people who own or have
previously owned one of the vehicles.
In the UK around 1.2 million diesel engine cars
are affected by the emissions scandal.
Harcus Sinclair said it was basing its estimate of
the level of compensation owners could get on
the €5,000 (£4,300) per owner awarded in Spain
and the $8-10,000 awarded in the US.
"The key allegation is that the affected cars
should not have been certified as fit for sale
because it is alleged that they produced higher
levels of nitrogen oxide and nitrogen dioxide
emissions than the rules allowed," it said in a
statement.
Ombudsman approach
Seventy-seven current or former VW owners have
put their names to Harcus Sinclair's application
for a group litigation order which will be heard in
the High Court on 30 January.
The firm hopes that the marketing and publicity
surrounding Monday's launch will encourage
more drivers to sign up to the action.
It added it was also talking to other law firms
about joining forces with them, in an effort to
avoid cost duplication.
If the High Court gives the action the go-ahead, a
pre-trial hearing will follow and then the trial
itself in about 18 months.
In a statement, VW said: "We have been notified
that Harcus Sinclair intends to bring proceedings
against Volkswagen on behalf of 77 claimants in
the English High Court.
"We intend to defend such claims robustly," it
added.
Another law firm, Leigh Day, said it had been
approached by about 10,000 VW owners
regarding the emissions issue.
However, the company said it wanted to avoid
the "cost risk associated with pursuing the matter
through the courts".
Instead, it had submitted some test cases to the
dispute resolution body, the Motor Ombudsman.
