Volkswagen Exec Could Get 169 Years; Top Managers Warned Not to Go on Vacation

Steph Willems
by Steph Willems

After a Volkswagen official was collared in Miami while on vacation, other top company officials have been warned to stay close to home.

Oliver Schmidt, who allegedly lied to environmental regulators to cover up VW’s emissions cheating, was arrested by FBI agents Saturday while returning home from a Cuban holiday. According to Reuters, Schmidt, one of six former or current VW managers indicted on multiple charges this week, could face up to 169 years in a U.S. prison if found guilty.

After the FBI’s lucky airport break, a new report suggests top brass in Wolfsburg are feeling penned in. Kiss that winter vacay goodbye.

Sources inside the company and in the legal world tell Reuters that top-ranking managers at Volkswagen headquarters have been warned not to leave the country. With informants piling up in the U.S., the obvious fear is that Johnny Law could be waiting on the tarmac. Authorities in other countries could extradite the employees to the U.S.

An unnamed company lawyer claims Schmidt, who is being held without bail, was among the managers warned not to stray outside German borders.

Five of the six officials indicted by a U.S. federal court remain in Germany, but the no-fly warning also extends to several employees not facing charges. The first VW employee arrested in the U.S., engineer James Liang, apparently sang like a canary, and is still helping Department of Justice and FBI investigators. That likely led to the charges against the others.

For Schmidt, the eleven felony counts could lead to an “effective life sentence,” one Justice Department official said.

Suspiciously, only a single VW executive appeared at the recent Detroit auto show. Volkswagen brand chief Herbert Diess, who joined the company shortly before the scandal became public, arrived in Detroit alone — a move an unnamed senior VW manager called “bold.”

Earlier this week, VW pleaded guilty to three felony charges and agreed to pay a $4.3 billion civil and criminal settlement.

[Image: Wikimedia Commons ( CC BY 3.0)]

Steph Willems
Steph Willems

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  • Voyager Voyager on Jan 15, 2017

    Ask the Germans to extradite Winterkorn. Has FCA CEO Marchionne set foot on American soil for the Detroit Auto Show?

  • Kmoney Kmoney on Jan 15, 2017

    169 years, reduced to 'time served' for the car ride to the airport until his attorney got him ROR'd. It's America, white-collar criminals don't get meaningful jail sentences...

  • Varezhka I have still yet to see a Malibu on the road that didn't have a rental sticker. So yeah, GM probably lost money on every one they sold but kept it to boost their CAFE numbers.I'm personally happy that I no longer have to dread being "upgraded" to a Maxima or a Malibu anymore. And thankfully Altima is also on its way out.
  • Tassos Under incompetent, affirmative action hire Mary Barra, GM has been shooting itself in the foot on a daily basis.Whether the Malibu cancellation has been one of these shootings is NOT obvious at all.GM should be run as a PROFITABLE BUSINESS and NOT as an outfit that satisfies everybody and his mother in law's pet preferences.IF the Malibu was UNPROFITABLE, it SHOULD be canceled.More generally, if its SEGMENT is Unprofitable, and HALF the makers cancel their midsize sedans, not only will it lead to the SURVIVAL OF THE FITTEST ones, but the survivors will obviously be more profitable if the LOSERS were kept being produced and the SMALL PIE of midsize sedans would yield slim pickings for every participant.SO NO, I APPROVE of the demise of the unprofitable Malibu, and hope Nissan does the same to the Altima, Hyundai with the SOnata, Mazda with the Mazda 6, and as many others as it takes to make the REMAINING players, like the Excellent, sporty Accord and the Bulletproof Reliable, cheap to maintain CAMRY, more profitable and affordable.
  • GregLocock Car companies can only really sell cars that people who are new car buyers will pay a profitable price for. As it turns out fewer and fewer new car buyers want sedans. Large sedans can be nice to drive, certainly, but the number of new car buyers (the only ones that matter in this discussion) are prepared to sacrifice steering and handling for more obvious things like passenger and cargo space, or even some attempt at off roading. We know US new car buyers don't really care about handling because they fell for FWD in large cars.
  • Slavuta Why is everybody sweating? Like sedans? - go buy one. Better - 2. Let CRV/RAV rust on the dealer lot. I have 3 sedans on the driveway. My neighbor - 2. Neighbors on each of our other side - 8 SUVs.
  • Theflyersfan With sedans, especially, I wonder how many of those sales are to rental fleets. With the exception of the Civic and Accord, there are still rows of sedans mixed in with the RAV4s at every airport rental lot. I doubt the breakdown in sales is publicly published, so who knows... GM isn't out of the sedan business - Cadillac exists and I can't believe I'm typing this but they are actually decent - and I think they are making a huge mistake, especially if there's an extended oil price hike (cough...Iran...cough) and people want smaller and hybrids. But if one is only tied to the quarterly shareholder reports and not trends and the big picture, bad decisions like this get made.
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