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Posts Tagged ‘vw diesel settlement’

Volkswagen Pleads Guilty to Three Felony Counts in Diesel Scandal

Judge agrees to consider motion from owners.

by on Mar.10, 2017

Volkswagen AG pleaded guilty to three felony counts in U.S. District Court in Detroit today.

This story has been updated with new information.

Volkswagen AG pleaded guilty to three felony counts in U.S. District court in Detroit as part of a $4.3 billion settlement with the Department of Justice.

The guilty pleas were a first for VW, which had never pleaded guilty to any criminal charges before — ever, according to VW officials.

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“Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts,” said VW general counsel Manfred Doess while entering plea on the company’s behalf. He flew from Germany to Detroit for the trial. (more…)

VW Set to Plead Guilty as Buyback Accelerates

Court move would lock down $4.3b criminal settlement.

by on Mar.10, 2017

A new VW Arteon prototype makes its debut at this week's Geneva Motor Show.

Volkswagen is expected to plead guilty in U.S. District Court in Detroit today, wrapping up a settlement with the federal government for cheating on diesel emissions tests.

The move follows a series of civil settlements, and will cost the automaker $4.3 billion, the figure announced in January at a news conference by government regulators just days before the end of the Obama Administration. Seven current and former Volkswagen employees have faced criminal charges for their role in the diesel rigging, though one has already pleads guilty. Only one of the others is currently in custody.

Beyond the Headlines!

All told, the German automaker has so far agreed to spend more than $20 billion in civil and criminal fines and other costs. It is currently ramping up the buyback of around 475,000 2.0-liter diesels equipped with so-called a “defeat device” meant to reduce emissions during emissions testing. A separate deal covers more than 40,000 vehicles with 3.0-liter turbodiesels, though VW believes it can repair some of those.

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Latest VW Diesel Deal Could Be Even More Costly

German maker could pay $4b, triple initial pricetag, if it can’t fix 3-liter engine.

by on Feb.01, 2017

A line-up of Audi TDI models. The automaker may have to boost its reserve to cover the diesel scandal.

The settlement covering a rigged, 3.0-liter turbodiesel could cost Volkswagen as much as $4 billion if it cannot come up with the necessary fix for nearly 60,000 vehicles whose engines were rigged to illegally pass U.S. emissions tests – at least three times more than the initial settlement calls for.

The impact of the scandal – which previously saw VW agree to pay out $14.7 billion to cover nearly 500,000 vehicles using a smaller diesel engine – continues to grow, and to spread. German mega-supplier Robert Bosch GmbH now has negotiated its own settlement, which will require it to pay $327.5 million to American owners of VW diesels.

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Meanwhile, VW’s Audi division is now examining whether it has set aside enough money to cover its share of the burden. It has already set the figure at 980 million euros, or $1.06 billion at the current exchange rate. Audi sold a number of different models in the U.S. using both the 2.0- and 3.0-liter turbodiesels.

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Former VW CEO Under Increasing Scrutiny

Prosecutors asking what Winterkorn knew and when.

by on Jan.27, 2017

Ousted VW CEO Martin Winterkorn during a presentation at the Tokyo Motor Show.

Former Volkswagen CEO Martin Winterkorn, ousted following the revelation of Volkswagen’s diesel emissions rigging, may have known about the subterfuge far earlier than he has so far acknowledged, according to German prosecutors.

If that proves true, the life-long VW executive could face potential criminal charges on both sides of the Atlantic. After announcing a $4.3 billion settlement of a criminal investigation of the automaker earlier this month – a deal that was accompanied by six criminal indictments — U.S. Justice Department officials said they might yet bring charges against other VW employees.

In the Know!

The German investigation further challenges claims by the automaker that only a “handful” of low-level engineers knew about the plan to use rigged software to help VW’s diesel engines pass tight U.S. emissions standards.

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VW Agrees to $4.3 Bil Criminal Settlement in VW Diesel Scandal

No “rogues”; “very significant people in company” were involved.

by on Jan.11, 2017

"They obfuscated, they denied and they ultimately lied," said Attorney General Loretta Lynch.

The U.S. Justice Department and several other federal agencies have announced a $4.3 billion settlement of the criminal investigation of Volkswagen AG’s diesel emissions rigging, regulators also revealing that six executives have been indicted on charges ranging from wire fraud to conspiracy to defraud the government.

Justice officials said the investigation will continue into actions that might have been taken by other officials. The list of those involved in the scandal, they noted during a Wednesday afternoon news conference in Washington, D.C., include some “very significant people in the company,” one executive managing more than 10,000 other employees. The automaker had previously tried to downplay the situation, insisting on several occasions that only a “handful” of “rogue” workers had been involved.

Breaking News!

“It is now clear Volkswagen’s top officials knew about these activities and kept the American government and the American people in the dark,” said Andrew McCabe, deputy director of the FBI, “and they did it for years.”

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VW Crawls Closer to Diesel Resolution with $4.3B Settlement

Any deal would preclude authorities arresting employees.

by on Jan.11, 2017

Volkswagen is inching closer to closing the books on its diesel emissions scandal with a $4.3 billion settlement.

Volkswagen AG appears to be one very expensive step closer to winding up its diesel emissions scandal case in the U.S. after agreeing to pay a $4.3 billion settlement for the impact of rigging its diesels to cheat U.S. requirements.

The proposed deal with the U.S. Justice Department and U.S. Customs and Border Protection forces VW to enter a guilty plea regarding “certain U.S. criminal-law provisions.” Also the agreement, which isn’t final yet, forces the automaker to be subject to an independent monitor for the next three years.

Diesel News!

VW officials said the settlement “is still subject to the approval by the management board and the supervisory board of Volkswagen AG.” The Justice Department declined to comment. (more…)

VW Strikes Deal on Bigger Diesel Engines – Will Mean Mix of Buybacks and Fixes

"We are committed to earning back trust," says VW's US chief.

by on Dec.20, 2016

Audi used the 3.0-liter turbodiesel in a number of models before the emissions scandal broke.

Volkswagen has reached a settlement with federal and state regulators involving about 80,000 diesel vehicles not covered by the $15 billion settlement the automaker agreed to last June.

While some details have yet to be released, the tentative deal that has been presented to U.S. District Judge Charles Breyer in San Francisco authorizes both buybacks and fixes for Volkswagen, Porsche and Audi models equipped with the German maker’s 3.0-liter turbodiesel. The earlier agreement covered 475,000 VW and Audi vehicles fitted with a 2.0-liter diesel engine.

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“The agreement announced by the Court today between Volkswagen and U.S. environmental regulators is another important step forward in our efforts to make things right for our customers,” said Hinrich J. Woebcken, President and CEO of Volkswagen Group of America, Inc. “

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VW, Feds Get Extension on Diesel Settlement Negotiations

Breyer notes that talks are "complicated."

by on Dec.19, 2016

Volkswagen and federal regulators received an extension their deadline to reach a settlement on VW's 3.0-liter diesel engine emissions scandal.

Volkswagen AG and Bosch GmbH got very different types of news today about the same problem: how much they’re going to pay to resolved the emission cheat scandal for VW’s diesel engines in the U.S.

U.S. District Judge Charles Breyer gave the automaker and federal regulators until Friday in what he termed a “final” extension on the deadline he set for the parties to work out a settlement on 80,000 vehicles equipped with the 3.0-liter diesel engines that failed to meet U.S. emissions standards.

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In granting the extension, Breyer noted that the discussions were complicated, but that he was optimistic they would reach a deal by Friday. The deal was supposed to be done last Friday. (more…)

VW Awaits Judge’s Ruling on 3.0-Liter Diesel Punishment

Maker expected to pay at least $200 million in fines.

by on Dec.16, 2016

Volkswagen is expected to pay at least $200 million to offset the emission violations for its 3.0-liter diesel in the U.S.

The other shoe is scheduled to drop on Volkswagen AG today as a federal judge in San Francisco is expected to rule on the proposed settlement to resolve the issues surrounding the German maker’s 3.0-liter diesel engine.

U.S. District Judge Charles Breyer is expected to issue a decision about the automaker’s plans to fix or buyback about 80,000 of the affected diesel-powered vehicles: 20,000 will be bought while the remaining 60,000 Audis and VW SUVs will be repaired.

The Last Word!

The same judge already approved a deal costing VW about $10 billion to fix or buy nearly 475,000 vehicles powered by 2.0-liter diesel engines. The overall plan involving those engines will cost VW $14.7 billion in fees, fines and other future actions in addition to the repairs and buybacks. (more…)

VW Diesel Buybacks Popular with Vehicle Owners

Automaker in talks with regulators about 3.0-liter diesels.

by on Nov.03, 2016

VW boss Herbert Diess, left, must finalize the company's economic plans for the next five years as VW works on another diesel settlement in the U.S.

Volkswagen AG appears to be at the precipice of a settlement on its 3.0-liter diesel engines that were part of its emissions scandal last year. Meanwhile owners of 2.0-liter diesels are lining up in droves to accept VW’s buyback offer from the recently completed settlement.

The buybacks are part of a $14.7 billion settlement agreement hammered out by VW and federal and state regulators in the wake of the automaker’s admission that it cheated on diesel emissions testing in the U.S. and around the world.

By the Numbers!

Sharon Nelles, the German automaker’s attorney, told U.S. District Judge Charles Breyer in San Francisco that more than 370,000 people have signed up on the settlement website and almost 200,000 of those submitted claims, describing the response as “exceptional.” (more…)