Volkswagen ordered to pay $2.8 billion in USA diesel emissions cheating scandal

Posted April 22, 2017

The German automaker pleaded guilty in March to fraud, obstruction of justice and falsifying statements after admitting to installing secret software in 580,000 US vehicles.Speaking on behalf of Volkswagen, general counsel Manfred Doess said the company "deeply regrets the behavior that gave rise to this case. As always it's the little guy".

As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the United States and fully cooperate in the government's ongoing investigation and prosecution of individuals responsible for these crimes. By imposing the fine, and accepting Volkswagen's agreement to be overseen by a federal monitor, the judge also accepted the deal between the government and the company.

Volkswagen must pay a $2.8 billion criminal fine for purposely building a diesel engine equipped with software to cheat on greenhouse gas emissions tests.

"This is a deliberate and massive fraud perpetrated on the American consumer, and it would seem, consumers throughout the world", he said.

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Separately, VW is paying United States dollars 1.5 billion in a civil case brought by the government and spending USD 11 billion to buy back cars and offer other compensation.

The deal was the result of negotiations between VW and the Justice Department which took into account the significant criminal charges and sentences faced by seven employees.

Volkswagen admitted to conspiring for almost a decade to deceive USA officials with illegal software that allowed vehicles to pass government emissions tests and then pollute far beyond legal limits on the road.

VW general counsel Manfred Doess said the company is not the same one that was caught 18 months ago.

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Larry Thompson, a deputy attorney general under former President George W. Bush, has been named to lead the independent monitoring team at Volkswagen, Assistant U.S. Attorney John Neal said.

"This conduct was not consistent with the values of this company and plain and simple it was wrong".

Earlier this year, the U.S. Environmental Protection Agency and the California Air Resources Board approved a fix for around 67,000 of the 475,000 Volkswagens and Audis with 2-liter diesel engines that were programmed to cheat on U.S. emissions tests. "We let people down and for that we're deeply sorry".

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