Friday, 21 April 2017

Largest Fine In History, Volkswagen To Pay $2.8billion For False Emission Test

Volkswagen has been ordered to pay a $2.8billion criminal penalty in the United States for cheating on diesel emissions tests, the largest fine ever imposed by the government on an automaker.

Nearly 600,000 diesel cars in the US were fitted with defeat device software to switch engines to a cleaner mode when they were being tested for emissions.

Federal Judge Sean Cox in Detroit followed the deal negotiated by VW and the US Justice Department.

'This is a case of deliberate, massive fraud perpetrated by VW management,'said Cox.

'This case also involves a failure of the VW supervisory board, which is government, labor and shareholders.'

The sentence was ordered Friday, six weeks after the German automaker pleaded guilty to conspiracy and obstruction of justice.


VW admits that nearly 600,000 diesel cars in the US were fitted with defeat device software to switch engines to a cleaner mode when they were being tested for emissions.

VW attorney Jason Weinstein says the criminal fine is an 'appropriate and serious sanction'.

Separately, VW is paying $1.5billion in a civil case brought by the government and spending $11 billion to buy back cars and offer other compensation.

Seven employees have also been charged.

Volkswagen CEO Matthias Mueller, seen here in March, apologized to Obama last year for the scandal. 

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