VW Agrees A Draft $4.3 Billion Settlement over Emissions Scandal
German automaker Volkswagen has agreed a draft $4.3 billion settlement with the Department of Justice and US Customs over the emissions-rigging scandal.
VW also said it would plead guilty to breaking certain US laws.
The company said it was in advanced discussions with the DoJ and US Customs about the deal.
The final agreement has yet to be approved by VW’s management and supervisory board, which could happen later on January 11.
The company said it had negotiated a “concrete draft” of a settlement with US authorities that included criminal and civil fines totaling $4.3 billion, as well as appointing an independent monitor for the next three years.
The fine means that the total costs associated with the emissions cheating scandal are set to exceed the $19.2 billion VW has set aside to deal with the issue.
Volkswagen has already agreed to a $15 billion civil settlement with environmental authorities and car owners in the US.
The scandal erupted in September 2015 when the EPA found that many VW cars sold in America had a “defeat device” – or software – in diesel engines that could detect when they were being tested and adjust the performance accordingly to improve results.
VW subsequently admitted cheating emissions tests in the US and many countries throughout the world.
On January 9 it emerged that VW executives knew about emissions cheating two months before the scandal broke, but chose not to tell US regulators, according to court papers.
The executives involved include Oliver Schmidt, who was in charge of VW’s US environmental regulatory compliance office from 2012 until March 2015.
On January 9, Oliver Schmidt was charged with conspiracy to defraud and has been remanded ahead of a court appearance on January 12.