Volkswagen pleading guilty in emissions scandal today

DETROIT/WASHINGTON - Volkswagen AG pleaded guilty Friday to three felony counts as part of a $4.3 billion settlement reached with the Justice Department in January over the automaker's massive diesel emissions scandal.

VW general counsel Manfred Doess made the plea on the company's behalf after he said at a hearing in U.S. District Court in Detroit that he was authorized by the board of directors of VW to enter a guilty plea.

Friday was the first time the company has pleaded guilty to criminal conduct in any court in the world, a company spokesman said.

Iowa will receive $21 million over the next 10 years as part of the settlement. On Monday, Iowa Department of Transportation Director Mark Lowe invited Iowans to make suggestions on how the funds should be spent.

Public comments will be accepted until April 14 on a specially created state website - at www.iowadot.gov/vwsettlement. After that, a mitigation plan will be developed to be submitted to the VW settlement trustee, Gov. Terry Branstad said.

U.S. District Judge Sean Cox accepted the guilty plea Friday to conspiracy to commit fraud, obstruction of justice and entry of goods by false statement charges and set an April 21 sentencing date.

Cox said he was considering a motion made by a lawyer for some owners on whether to allow additional restitution for victims. The Justice Department and VW argue the automaker has already agreed to significant restitution.

'This a very, very, very serious crime. It is incumbent on me to make a considered a decision,” Cox said.

Under the plea agreement, VW agreed to sweeping reforms, new audits and oversight by an independent monitor for three years after admitting to installing secret software in 580,000 U.S. vehicles.

The software enabled it to beat emissions tests over a six-year period and emit up to 40 times the legally allowable level of pollution.

In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offer to buy back about 500,000 polluting U.S. vehicles.

The German automaker halted sales of diesel vehicles in late 2015 and has said it has no plans to resume sales of new U.S. diesels.