Second VW employee arrested over emissions scheme

The Volkswagen executive who once was in charge of complying with US emissions regulations was arrested during the weekend in Florida and accused of deceiving federal regulators about the use of special software that cheated on emissions tests.

Oliver Schmidt, who was general manager of the engineering and environmental office for VW of America, was charged in a criminal complaint with conspiracy to defraud the US government, to commit wire fraud and to violate the Clean Air Act.

Schmidt, 48, a German resident, is the second VW employee to be arrested as part of an ongoing federal investigation into VW, which has admitted that it programed diesel-powered vehicles to turn pollution controls on during tests and to turn them off in real-world driving. The scandal has cost VW sales and has tarnished its brand worldwide.

He was arrested during the weekend in Florida and would face an initial hearing in Miami. After that he likely would be taken to Detroit, where the Justice Department investigation is based, to face arraignment. It wasn't immediately clear if he had a lawyer.

The complaint, dated on Dec 30, said Schmidt in 2015 misled regulators who asked why Volkswagen vehicles emitted higher emissions on the road than during tests. Schmidt "offered reasons for the discrepancy" other than the fact that the company was cheating on emissions tests through illegally installed software on its diesel vehicles, according to court documents.

The complaint said Schmidt and other VW executives conspired to violate the Clean Air Act by making false representations about the environmental quality of their cars.

The company has agreed to either repair the cars or buy them back as part of a $15 billion settlement approved by a federal judge in October. Volkswagen agreed to pay owners of 2-liter diesels up to $10,000 depending on the age of their cars.

(China Daily 01/11/2017 page12)