American Authorities Are Weighing The Maximum Penalty For Dieselgate

Volkswagen is reportedly being assessed by the U.S. Justice Department to determine the quantum of the criminal penalty it can receive without becoming bankrupt.
Volkswagen Passat 2.0 TDI engine bay 1 photo
Photo: Volkswagen
People familiar with the negotiations have revealed that the American government is trying to reach a settlement with Volkswagen in the Dieselgate situation, but the authorities are wondering how much they can ask the German automaker to pay without affecting the company’s financial health.

As Bloomberg notes, the assessment is taking place at a time when the U.S. is attempting to settle a civil case with the largest bank in Germany, Deutsche Bank AG.

and the said bank directly account for over 320,000 jobs in Germany, without mentioning hundreds of thousands that rely on the two corporations. If either case resulted in a penalty that would be too high for the financial health of the company that will have to pay, many jobs would be at risk.

The U.S. Justice Department is attempting to find a balance between a suitable penalty, which would be regarding the damages inflicted by the emissions cheating scheme, while also considering the economic effects of the criminal sanction. Nobody wants to risk that many jobs, even in a foreign country, as they could also affect the global economy and influence national currency.

The task is tough, as the authorities must reach a settlement with both parties by January 2017, when the American administration will change, resulting in the change of the political appointees that have been overseeing the process. If the participants fail to strike an accord by then, the process might have to be restarted.

Meanwhile, when news broke out about the assessment made by the U.S. Department of Justice regarding Volkswagen’s finances, the stock value of the German company suffered a mild fall because of concerns about the company’s financial health. Further speculation on the matter will do nothing good for the automaker.

representatives replied with an assurance that its finances are robust. The company will only comment on the penalties once the procedures and investigations will be concluded.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories