DETROIT _ A federal judge in Detroit on Friday accepted a guilty plea from Volkswagen on three federal charges connected to the automaker's diesel emissions scandal.
However, Judge Sean Cox said he wanted more time to review the terms of a proposed settlement agreement of $4.3 billion, an amount far less than what the company could be fined under federal sentencing guidelines.
"With all due respect ... this is a very, very serious offense," Cox said. "It is incumbent on me to make a considered a decision."
Cox scheduled another hearing for April 21.
Volkswagen did, however, appear in court, plead guilty and waive its right to a jury trial in a wide-ranging investigation into the company's diesel engines that were equipped with software designed to fool federal emissions tests.
Manfred Doess, Volkswagen's general counsel, traveled from Germany to Detroit to appear on behalf of the world's largest automaker.
Doess acknowledged that the company willfully created the software so its diesel engines could pass tougher emissions standards adopted in 2007 and then spent years deceiving federal regulators.
"Volkswagen AG is pleading guilty on all three counts of the allegations because it is guilty of all three counts, and Volkswagen AG has admitted those facts," Doess said.
Doess, a tall man with reddish blonde hair, said some Volkswagen employees destroyed documents after they knew the company was under investigation.
Flanked by two attorneys, Doess said was careful to say that while midlevel managers and engineers were involved, they were "below the level of Volkswagen AG management board."
Volkswagen employees, he said, cheated on emissions tests "by using software to make it appear that certain Volkswagen, Audi and Porsche diesel vehicles met U.S. standards when in fact they did not."
The automaker and the U.S. Department of Justice reached a proposed agreement in January that calls for it to increase its internal compliance systems and agree to new audits and oversight by an independent monitor for three years. Volkswagen also has agreed to pay a $2.8 billion criminal fine and $1.5 billion to settle environmental, customs and financial violations.
U.S. Attorney John Neal said those agreements and the amount money Volkswagen agreed to pay reflects the seriousness of the crime even though the automaker could be fined $17 billion to $34 billion under federal sentencing guidelines.
"I think in this case we are talking about a very calculated crime, it is a very serious crime and I think the agreement treats the crime very seriously," Neal said.
Volkswagen also has agreed to pay much more than other recent automotive companies who have pleaded guilty to wrong doing.
Japanese airbag manufacturer Takata agreed to pay $1 billion on Feb. 27 for concealing data for more than a decade that showed its air bags could be at risk of exploding and harming passengers under certain conditions. General Motors agreed to pay $900 million in 2015 to settle the recall of millions of faulty ignition switches linked to more than 120 deaths and Toyota agreed to pay $1.2 billion in 2014 for concealing defects connected to the recall of more than 10 million vehicles at risk of unintended acceleration.
Neal said Volkswagen's criminal offenses were egregious because it willfully cheated and did not voluntarily disclose its wrongdoing. However, Neal said the company worked swiftly with federal officials to reach the multibillion-dollar civil settlement for customers who purchased its cars and worked closely with the government to reach the criminal settlement.
The investigation, along with its cover-up, has forced Volkswagen to agree to civil settlements worth about $17 billion for U.S. consumers and dealers who own the automaker's diesel vehicles.
"Volkswagen deeply regrets the behavior that gave rise to the diesel crisis," the company said in a statement. "The agreements that we have reached with the U.S. government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear."
David Haigh, CEO of London-based Brand Finance, said the diesel scandal initially had a devastating impact on Volkswagen as its stock price dropped and several top executives were pushed aside.
"The company is, however, a good example of how a strong brand can help weather a crisis. Over the past year, Volkswagen's brand value has bounced by 32 percent as the company took steps to earn back the trust of its customers," Haigh said.
Cox's decision to postpone a decision on the terms of the agreement may have been swayed by objections filed by attorneys representing about 3,600 owners of Volkswagen vehicles with diesel engines.
Those attorneys argue that the fines proposed by the U.S. government don't compensate some consumers who opted out of civil settlements. Instead, the fines and penalties go to the government.
Steven Webster, who represents some of those owners, also said earlier this week that the government is offering Germany-based Volkswagen AG a deal that gives its U.S. subsidiary _ Volkswagen Group of America _ immunity from other criminal lawsuits filed across the country.
Neal, in court today, said those consumers had the option of accepting generous civil settlements from Volkswagen that are higher than they are likely to win from individual court cases.
Volkswagen also has agreed to continue cooperating with the government's investigation.
Seven Volkswagen executives and managers were have been indicted. An engineer, James R. Liang, pleaded guilty to one count of conspiracy to defraud the U.S. last fall. A general manager, Oliver Schmidt, pleaded not guilty last month to several charges and is scheduled to go to trial next month in Detroit.
