In a first settlement of the scandal in the United States, the auto giant agreed in June to pay $15.3 billion to settle civil charges, including $10 billion to cover buybacks or fixes for 475,000 2.0 liter diesel cars and sport utility vehicles. The various criminal charges, civil lawsuits and settlements will continue and could cost Volkswagen billions of dollars in penalties.
Advertisement
It’s possible the Justice Department will seek a guilty plea from VW, though the more likely option will be a deferred prosecution agreement, whereby the charges would eventually be dropped as long as VW adheres to an agreed upon settlement.
It’s unclear if any individuals working at VW will also be charged. Last year, General Motors paid $900m to end an investigation into an ignition switch defect, which cut engines and disabled systems like power steering and airbags, linked to 124 deaths. The automaker is expected to face both charges and substantial financial penalties.
Now more news on the legal front has landed, as of yesterday afternoon.
“Volkswagen is committed to earning back the trust of our customers, dealers, regulators and the American public”. A federal judge also pressured Volkswagen and government officials to quicken negotiations.
The penalties may exceed the $1.2 billion which Toyota had to suffer for intentionally hiding unintended acceleration glitches, the WSJ reports. The Environmental Protection Agency disclosed the cheating last September, leading to the resignation of Volkswagen’s chief executive and sparking litigation, investigations and fines across the globe.
Volkswagen’s civil settlement affected 475,000 diesel-powered vehicles with two-liter engines containing software allowing cars to appear clean during government tests but emit nitrogen oxides far above allowable standards on the road.
Volkswagen may have already agreed to a $15 billion settlement with USA regulators, but its legal troubles are far from over in the US. Other litigation and investigations in Europe and Asia loom.
“Our discussions are continuing toward a resolution of remaining issues”, the company, based in Wolfsburg, Germany, said Tuesday in an e-mailed statement.
Advertisement
Negotiations between the USA and Volkswagen are expected to result in significant financial penalties after Justice Department officials found the evidence in its probe of emissions-test cheating by the carmaker, the Wall Street Journal reported, citing people familiar with the talks.
