autoevolution
Car video reviews:
 

VW's Dieselgate Case Sentenced, Company Will Pay $4.3 Billion To U.S. Government

Three months after Volkswagen USA made a plea agreement in court, the case against the German conglomerate and the U.S. Government was sentenced.
Volkswagen Passat 2.0 TDI engine bay 1 photo
U.S. District Judge Sean Cox had a vital role in this trial, and he decided to wait until April to be sure that the situation will be carefully analyzed.

While lawyers representing the U.S. Department of Justice argued that the settlement proposed by Volkswagen is a fraction of what American laws allowed for this type of offense, the DoJ’s legal representatives admitted the value was reasonable.

The penalty for VW’s actions could have ranged between $17 and $34 billion according to American law.

The sentence was for Volkswagen to pay a criminal penalty of $2.8 billion, along with other penalties and fines that add up to $4.3 billion. The latter is the amount proposed in the plea agreement made this January.

VW was also sentenced to three years of probation, and the company’s representatives have agreed to have a federal monitor oversee its compliance with American regulations.

The values mentioned above come on top of civil settlements that the German company already agreed to pay to its customers in the country, which will add up to $17 billion, along with fixing the affected vehicles.

Judge Cox criticized the “corporate greed and failure of the management,” which eventually led to billions of dollars in costs for the automaker, Automotive News remarks.

The U.S. District Judge also stated that the individuals who will be hurt the most are the honest employees of VW, who will probably not get any raises or bonuses because of the financial burden of these penalties.

Hiltrud Werner, a board member responsible for overseeing legal affairs in the Wolfsburg-based firm, stated that he and his co-workers are looking forward to working with Mr. Thompson.

Larry Thompson is the former U.S. deputy attorney general, and has been selected to monitor the car maker's compliance with federal laws. Mr. Werner promised to make the biggest change process in the brand’s history.

 
 
 
 
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories