Volkswagen agreed to a $14.7-billion civil settlement with the U.S. Environmental Protection Agency and California Air Resources Board in June that included payments up to $10,000 to VW owners and buybacks of vehicles.
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Volkswagen AG VOWG_p.DE and the U.S. Justice Department have held preliminary settlement talks about resolving a criminal probe into the automaker’s diesel emissions scandal, two sources briefed on the matter said.
Reached for comment, Volkswagen issued a statement that said it “is committed to earning back the trust of our customers, dealers, regulators and the American public”. Volkswagen and Department of Justice prosecutors are said to be in negotiations to settle the case before the end of the year, though that timing isn’t firm.
Cars were configured to reduce harmful nitrogen oxide emissions during official pollution tests, while allowing emissions of up to 40 times the legal limit during actual driving.
“Remember when you look at Toyota (TM) and the unintended acceleration, the final penalty form the DOJ was $1.2 billion”.
Volkswagen, the world’s second largest vehicle maker by sales a year ago, is expected to receive credit from prosecutors for cooperating with their probe and agreeing to the civil accord.
Volkswagen is still negotiating a separate civil settlement stemming from 85,000 vehicles with three-liter diesel engines that feature illegal emissions software.
Complicating matters is the fact that many VW employees responsible for the scandal live in Germany, which would require them to be extradited to the USA if they faced criminal charges.
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Other automakers have been charged by the Justice Department for criminal acts related to safety or regulatory misconduct.
