Volkswagen AG · environmental regulation · criminal prosecution · corporate fraud
Did Volkswagen admit using software to cheat diesel emissions tests?
Yes. Volkswagen AG pleaded guilty in a US federal court on 10 March 2017 to three felony counts and was sentenced on 21 April 2017 to a $2.8 billion criminal penalty, three years of probation and an independent monitor. In Germany it accepted a EUR 1 billion administrative fine from the Braunschweig public prosecutor on 13 June 2018 and said that by doing so it admits its responsibility for the diesel crisis. As of 30 October 2026 the corporate criminal and regulatory matters described here are concluded, while proceedings against individuals are separate.
Last verified 30 October 2026. United States · Germany
The record at a glance
| What was alleged? | The US Department of Justice alleged that Volkswagen installed software in about 590,000 US diesel vehicles that detected emissions testing and reduced emissions controls during normal driving, misled US regulators and customers, and destroyed documents after the discrepancy was exposed.1 |
|---|---|
| Who made the claim? | US Department of Justice, 11 January 2017 |
| How did Volkswagen respond? | Volkswagen admitted the conduct through its guilty plea in the United States and its acceptance of the German fine. Its chief executive said the company regretted the behaviour behind the diesel crisis. In accepting the German fine Volkswagen said it was admitting responsibility.2,3 (the subject's position) |
| Was there an official finding? | Volkswagen AG was convicted in the United States on its guilty plea to three felony counts and sentenced on 21 April 2017.4 Volkswagen AG accepted a EUR 1 billion fine in Germany for breach of monitoring duties relating to an impermissible software function in about 10.7 million diesel vehicles.3 |
| Was liability determined? | Yes, liability was determined. Convicted in the US District Court for the Eastern District of Michigan on a guilty plea to three felonies, sentenced 21 April 2017. In Germany the company accepted a final administrative fine of EUR 1 billion under the Act on Regulatory Offences in 2018, which is not a criminal conviction under German law.3,4 |
| What changed later? | As of 30 October 2026 Volkswagen AG's US conviction and German administrative fine stand as final, and no corporate appeal was identified.3,4 |
| When was this checked? | 30 October 2026 |
What was alleged?
The US Department of Justice alleged that Volkswagen installed software in about 590,000 US diesel vehicles that detected emissions testing and reduced emissions controls during normal driving, misled US regulators and customers, and destroyed documents after the discrepancy was exposed.1
Made by US Department of Justice on 11 January 2017.
What did Volkswagen say?
Volkswagen admitted the conduct through its guilty plea in the United States and its acceptance of the German fine. Its chief executive said the company regretted the behaviour behind the diesel crisis. In accepting the German fine Volkswagen said it was admitting responsibility.2,3
"Volkswagen deeply regrets the behavior that gave rise to the diesel crisis."
Matthias Müller, Chief Executive of the Volkswagen Group (company press release), 11 January 2017. This is the subject's own account, not a finding.
What do independent records show?
Announcement of plea agreement and civil resolutions
US Department of Justice, 11 January 2017
Volkswagen agreed to plead guilty to three felony counts and pay a $2.8 billion criminal penalty, plus $1.45 billion to resolve EPA civil claims and customs fraud claims and $50 million in FIRREA civil penalties. Six executives and employees were indicted.1
Sentencing of Volkswagen AG on guilty plea entered 10 March 2017
US District Court for the Eastern District of Michigan (Judge Sean F. Cox), 21 April 2017
The court accepted the plea agreement and sentenced Volkswagen AG on conspiracy to defraud the United States, commit wire fraud and violate the Clean Air Act, obstruction of justice, and importation of merchandise by means of false statements. Sentence was a $2.8 billion criminal penalty, three years of probation and an independent compliance monitor, Larry D. Thompson.4
Administrative order imposing a fine under sections 30 and 130 of the German Act on Regulatory Offences
Braunschweig Public Prosecutor (Germany), 13 June 2018
A EUR 1 billion fine, made up of a EUR 5 million penalty and EUR 995 million disgorgement, for breach of monitoring duties in powertrain development. The order concerned about 10.7 million vehicles with EA 288 (Gen3, US and Canada) and EA 189 (worldwide) engines sold between mid 2007 and 2015 with an impermissible software function. Volkswagen accepted it and did not appeal.3
Judgment in criminal trial of four former Volkswagen managers, case 6 KLs 411 Js 49032/15 (23/19)
Regional Court of Braunschweig, commercial criminal chamber, 26 May 2025
The court convicted four former managers of fraud. Two received prison terms of four years six months and two years seven months, and two received suspended sentences, according to beck-aktuell and AP. The judgment was reported as not final, with the defence announcing an appeal on points of law. This concerns individuals, not Volkswagen AG as a defendant.5,6
What was established?
- Volkswagen AG was convicted in the United States on its guilty plea to three felony counts and sentenced on 21 April 2017.4
- Volkswagen AG accepted a EUR 1 billion fine in Germany for breach of monitoring duties relating to an impermissible software function in about 10.7 million diesel vehicles.3
Distinctions that matter here
- The US outcome is a criminal conviction on a guilty plea. The German outcome against the company is an administrative fine, because German law does not provide for corporate criminal liability in the same way.
- Convictions of former managers are findings against those individuals, not against the company.
Was liability determined?
Yes, liability was determined. Convicted in the US District Court for the Eastern District of Michigan on a guilty plea to three felonies, sentenced 21 April 2017. In Germany the company accepted a final administrative fine of EUR 1 billion under the Act on Regulatory Offences in 2018, which is not a criminal conviction under German law.3,4
What remains unresolved?
- The 26 May 2025 Braunschweig judgment against four former managers was reported as not final when issued, and no ruling on the announced appeal was found. Other proceedings against individuals in Germany and the United States are separate from the company's liability.
- Civil claims by vehicle owners and investors in various countries were not reviewed for this matter.
What is the current status?
As of 30 October 2026 Volkswagen AG's US conviction and German administrative fine stand as final, and no corporate appeal was identified.3,4
As of 30 October 2026. No next proceeding is scheduled in the records we found.
Timeline
- Justice Department announces plea agreement and indictment of six individuals.1
- Volkswagen AG pleads guilty in Detroit.4
- Volkswagen AG sentenced.4
- Braunschweig prosecutor fines Volkswagen AG EUR 1 billion, accepted by the company.3
- Braunschweig court convicts four former Volkswagen managers.5,6
Sources
- US Department of Justice, Office of Public Affairs, Volkswagen AG Agrees to Plead Guilty and Pay $4.3 Billion in Criminal and Civil Penalties; Six Volkswagen Executives and Employees are Indicted, 11 January 2017 · document record Government, parliamentary or audit document
- MarketScreener (Volkswagen AG release), Volkswagen reaches settlements with U.S. government (Volkswagen AG press release via Publicnow), 11 January 2017 · document record Filing or formal statement by the subject
- Volkswagen AG, Administrative order imposing a fine (Bußgeldbescheid) being issued by the Braunschweig public prosecutor against Volkswagen in the context of the diesel crisis (ad hoc release), 13 June 2018 · document record Filing or formal statement by the subject
- US Department of Justice, Office of Public Affairs, Volkswagen AG Sentenced in Connection with Conspiracy to Cheat U.S. Emissions Tests, 21 April 2017 · document record Government, parliamentary or audit document
- beck-aktuell (Verlag C.H. Beck), Frühere VW-Manager zu Haftstrafen verurteilt (LG Braunschweig, 6 KLs 411 Js 49032/15), 26 May 2025 Independent reporting
- Euronews (with AP), German court convicts four ex-Volkswagen managers of fraud in emissions scandal, 26 May 2025 Independent reporting
Revision history
- 30 October 2026: First published after source verification.
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