Date
17 January 2017
Volkswagen's supervisory board will meet soon to approve a multi-billion-dollar settlement with the US Justice Department over an emissions cheating scandal. Photo: Bloomberg
Volkswagen's supervisory board will meet soon to approve a multi-billion-dollar settlement with the US Justice Department over an emissions cheating scandal. Photo: Bloomberg

Volkswagen confirms US$4.3 bln settlement in US emissions case

Volkswagen AG confirmed Tuesday that it has negotiated a US$4.3 billion draft settlement with US regulators over a diesel-emissions cheating scandal.

Under the deal, the German automaker would plead guilty to criminal misconduct, Reuters reports.

VW admitted in September 2015 to installing secret software in hundreds of thousands of US diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road.

The company said its supervisory board and the management board will meet soon to approve the civil and criminal settlement with the US Justice Department.

VW has raced to get a deal done before President Barack Obama leaves office on Jan. 20.

A change in administration could have delayed a final settlement for months if not longer, Reuters noted.

Volkswagen said with the addition of the fine, its diesel costs will exceed the nearly 18.2 billion euros (US$19.2 billion) it has set aside to handle the problem.

The automaker also said it will face oversight by an independent monitor over the next three years.

The settlement will not end the Justice Department’s investigation into individual misconduct and more executives may face charges, sources told Reuters.

On Monday, a VW executive, Oliver Schmidt, the second VW employee charged by US prosecutors, was accused of conspiracy to defraud the United States over the company’s emissions cheating.

Volkswagen had previously agreed to spend up to US$17.5 billion in the United States to resolve claims by US regulators, owners and dealers and offered to buy back nearly 500,000 polluting vehicles.

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