Automotive - - Jan 11,2017
The long speculated settlement between VW and U.S. authorities over the emission scandal has been resolved at $4.3bn.
The German automobile manufacturer, Volkswagen, has agreed to plead guilty in the diesel emissions cheat that breached several U.S. laws.
The agreement is yet to be finalized and approved by VW's management as well as the supervisory board; it is expected that a solid confirmation would be announced on Wednesday.
VW told that the company has negotiated a "concrete draft" related to a settlement with U.S. authorities; it includes criminal and civil fines summing up to $4.3bn, moreover, assigning an independent monitor for the coming three years.
A civil settlement with car owners and environmental authorities in the U.S. worth $15bn has already been agreed by the famous automobile giant.
The $4.3bn settlement means that the total costs linked with the emissions cheating scandal are set to exceed the already blocked amount of $19.2bn, the company had kept for managing the issue.
VW has eventually admitted cheating emissions tests in the U.S. and many other countries across the world.
Head of global automotive research at Evercore ISI, Arndt Ellinghorst, said that the draft settlement was a positive news for VW and would surely draw a line under all pending US-related legal risk.
Ellinghorst further added it was important for VW to secure a settlement which allows the company to move ahead. He also highlighted that this is a major relief for the automaker because the case now doesn’t get pulled into the new U.S. administration.
On Monday, it was revealed that several VW executives knew about emissions cheating two months prior the scandal broke, but they chose not to inform the U.S. regulators, as per court papers.