Canadian Underwriter

Volkswagen to pay US$2.8 billion in U.S. diesel emission scandal

April 21, 2017   by Canadian Underwriter

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DETROIT – Volkswagen has been ordered to pay a $2.8 billion criminal penalty in the United States for cheating on diesel emissions tests.

FILE – This Thursday, June 8, 2006, file photo, shows Wayne County Circuit Judge Sean Cox, now a U.S. District Court judge, in his chambers in Detroit. On Friday, March 10, 2017, Volkswagen pleaded guilty in a scandal related to diesel emission tests, but Cox said wants more time to study the agreement negotiated by Volkswagen and the U.S. Justice Department and will hold another hearing on April 21. (AP Photo/Paul Sancya, File)

Federal Judge Sean Cox in Detroit followed the deal negotiated by VW and the U.S. Justice Department. 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 U.S. were programmed to turn on pollution controls during testing and off while on the road.

Related: Volkswagen agrees to US$4.3 billion in penalties in U.S. plea deal

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

Separately, VW is paying $1.5 billion 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.