Volkswagen has agreed to pay out US$4.3 billion in damages to resolve the case against it in the US over emissions cheating.

VOLKSWAGEN HAS AGREED to pay out US$4.3 billion in damages to settle the case against it in the US over emissions cheating and the cover-up of its ‘defeat device’ installed on diesel cars sold between 2006-2016. Earlier this week, the former head of VW’s environmental management team in the US, Oliver Schmidt was arrested and charged with fraud and conspiracy.

According to the documents filed with the US District Court in Detroit, Volkswagen has admitted to three charges: conspiracy to commit fraud, obstruction of justice and entry of goods by false statement. The German car maker has agreed to pay a $1.5 billion civil fine and a $2.8 billion criminal fine.

According to the US Justice Department, Volkswagen officials are alleged to have told engineers, in 2012, to destroy all documents relating to the cheating and that company lawyers pushed for employees to do the same.

Volkswagen has agreed to have its doings overseen by an independent administrator in the US for the next three years, has fired six employees, suspended eight and disciplined three others who were involved in the emissions cover up. It’s believed VW would have copped larger fines if it hadn’t agreed to spend US11 billion fixing customer vehicles.

What does this mean for Australian customers? Nothing. Despite the mounting of a class action, Volkswagen in Australia hasn’t breached any emissions laws as Australian regulations aren’t anywhere near as tight as those in California. Volkswagen has already begun it voluntary recall of affected vehicles.


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