VW Likely to Avoid Fines in Germany for Cheater Diesels

Volkswagen AG appears likely to avoid any fines in Germany for doctoring millions of diesels to evade the country’s emission standards—as long as it completes a series of recalls to bring the cheater engines into compliance.

VW admits manipulating the emission control systems in 11 million diesels worldwide, including 8.5 million in Europe and 2.5 million in Germany. But Germany's Transport Ministry says the carmaker’s only responsibility is to fix the engines.

Critics disagree. Opposition Green Party member Oliver Kirscher, who is heading a parliamentary investigation into the matter, complains that the government’s position “gives a blank check for tricks and deception.”

Kirscher and other critics want VW to compensate its German customers with a program akin to the $15.3 billion settlement the carmaker agreed to in the U.S. Affected owners in that market, where emission limits and regulatory fines are tougher, will receive an average $5,100 (€4,600) in addition to either having their cars fixed or bought back by VW.

Applying the same payout amount in Germany alone would cost the company about €11.5 billion.