VW Engineer Pleads Guilty in Emissions Cheating Scandal

The Wall Street JournalAruna Viswanatha and Christina

RogersSep. 9, 2016 4:45 pm

Summary• Who?– James Liang

• What?– Illegal emissions-cheating software

• When?– Began in 2006, involves models between

2006-2015• Where?– 11 million vehicles worldwide

Emerging Scandal• West Virginia University, 2014• “Pursued a strategy to disclose as

little as possible”• “Innocent mechanical and technical

problems”• “We only need a plausible

explanation.”• “We need a story for this situation”

Separate Civil Settlement• Paid regulators and consumers up to

$15 billion• Paid $1.2 billion settlement to

compensate dealers• Separate from criminal charges

Liang’s Criminal Charges• Conspiracy to Defraud the U.S.• Commit Wire Fraud • Violate the Clean Air Act• Sentencing– Scheduled for January– Faces up to five years in prison– Fine up to $250,000

Why?“He is one of the many at Volkswagen who got caught up in this emissions scandal…”

-Daniel Nixon, attorney

Ethical Questions–Who is at fault, Volkswagen or Liang? Is

Liang merely a fall guy? – Did Volkswagen pay settlements for

ethical reasons? Should Liang’s superiors be held more accountable?

–What is sufficient punishment for Liang?–What regulations can be implemented to

prevent similar situations in the future?