Volkswagen has confirmed that its emission scandal settlement to the US will be to the tune of $4.3 billion (around Rs 29,400 crore) and that it will plead guilty to charges of criminal misconduct in US courts.
The settlement with American authorities also pushes costs beyond the $18.2 billion the company had set aside to cover the costs.
The settlement is still in draft form, and will need approval from a US judge before it can be passed through. But early information suggests the deal will go forward before President Elect Donald Trump and his administration assume power on January 20.
“In case of a settlement agreement, the payment obligations are expected to lead to a financial expense that exceeds the current provisions,” Volkswagen said in an official statement.
Matthias Müller, chief executive officer of Volkswagen Group, said, "Volkswagen deeply regrets the behaviour that gave rise to the diesel crisis. Since all of this came to light, we have worked tirelessly to make things right for our affected customers and have already achieved some progress on this path. The agreements that we have reached with the U.S. government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear."
Once the deal goes through, VW will face a three-year supervision by an independent monitor. The brand’s senior employees are also still under investigation, and the FBI arrested former emissions compliance boss for the US, Oliver Schmidt, over the weekend.
Viraaj Bhatnagar
Dipan Sur
Dhruv Dhaka
Saptarshi Mondal
