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U.S. Court Confirms $4.3 Billion Penalty in VW Diesel Scandal
A federal judge in Detroit has finalized a plea agreement under which Volkswagen AG will pay $4.3 billion in fines and penalties for selling 590,000 diesel-powered vehicles in the U.S. that were rigged to evade emission laws.
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A federal judge in Detroit has finalized a plea agreement under which Volkswagen AG will pay $4.3 billion in fines and penalties for selling 590,000 diesel-powered vehicles in the U.S. that were rigged to evade emission laws.
The deal reached in January avoids penalties that could have reached as much as $34 billion, according to the government. But a stern District Court Judge Sean Cox indicates he is not convinced that VW’s top management has been properly punished, Automotive News reports.
Cox describes VW’s transgression as a “deliberate, massive fraud perpetrated by VW management.” He adds that he hopes the German government will continue to investigate and prosecute the guilty parties.
Manfred Doess, VW’s general counsel, told the court that VW “is not the same company it was 18 months ago” and adds, “We stand remorseful, and we are sorry.”
The U.S. Dept. of Justice has appointed Larry Thompson, former U.S. deputy attorney general, to monitor VW’s U.S. emission compliance operations for the next three years.
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