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1/11, 8:38 PM (Source: TeleTrader.com)
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VW to plead guilty and pay $4.3bn in emissions scandal

Volkswagen announced on Wednesday it will plead guilty and pay $4.3 billion in penalties to settle a United States Department of Justice investigation into the diesel emissions scandal.

The move comes after the German carmaker designed special software over a decade ago to evade the required Environmental Protection Agency tests and went through various litigations related to the matter over the past 15 months. The company has since admitted that over 11 million vehicles worldwide were equipped with devices that would reduce their nitrogen oxide emissions in laboratory tests.

The penalty announced today is among the largest criminal environmental settlements in the US history, second only to BP's Deepwater Horizon case.

Volkswagen said in October that it had set aside €18.2 billion ($19.2 billion) to cover the costs related to the scandal.

 

TeleTrader Newsroom / IB