- James Liang, a VW engineer, pleaded guilty to criminal charges related to the company's emissions cheating scandal. - Liang helped develop illegal emissions-cheating software that was installed on 11 million Volkswagen vehicles worldwide between 2006-2015. - He faces up to 5 years in prison and a $250,000 fine and is scheduled for sentencing in January.

1. VW Engineer Pleads Guilty
in Emissions Cheating
Scandal
The Wall Street Journal
Aruna Viswanatha and Christina Rogers
Sep. 9, 2016 4:45 pm

2. Summary
• Who?
– James Liang
• What?
– Illegal emissions-cheating software
• When?
– Began in 2006, involves models between
2006-2015
• Where?
– 11 million vehicles worldwide

3. 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”

4. Separate Civil Settlement
• Paid regulators and consumers up to $15
billion
• Paid $1.2 billion settlement to compensate
dealers
• Separate from criminal charges

5. 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

6. Why?
“He is one of the many at Volkswagen who
got caught up in this emissions scandal…”
-Daniel Nixon, attorney

7. 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?