Volkswagen To Pay $4.3 Billion To Settle Diesel Scandal, Will Plead Guilty To Criminal Charges

Tyler Durden's picture

Confirming recent leaks, Volkswagen - whose former head of US regulatory compliance was arrested on Saturday - said it was in "advanced discussions"  with US authorities to resolve charges related to its diesel emissions scandal, and has negotiated a “concrete draft of a settlement” that would see it pay $4.3 billion in criminal and civil penalties, and would require the German carmaker to enter a guilty plea to various criminal charges, strengthen compliance systems and install an independent monitor for three years.

The agreement, which has yet to be finalized, would lead to an expense that exceeds current provisions, the German automaker said. It also includes a guilty plea to some criminal charges, the Wolfsburg, Germany-based automaker said:

In case of a settlement agreement, the payment obligations are expected to lead to a financial expense that exceeds the current provisions. The concrete impact regarding the annual result 2016 cannot be defined at present due to its dependency on various further factors.

According to Bloomberg, VW’s management and supervisory boards are scheduled to review the settlement today or Wednesday and may raise provisions related to the scandal, which currently total €18.2 billion ($19.2 billion). A final agreement also needs to be approved by U.S. courts. The U.S. Justice Department declined to comment on Volkswagen’s statement.

VW, which admitted in September 2015 to installing software in its diesel cars to cheat emissions tests, is eager to resolve potential criminal charges before federal prosecutors overseeing the settlement talks leave with the Obama administration later this month the FT added.

Porsche, which owns 30.8% of Volkswagen, said its financial performance will be hurt by the settlement:

The concrete implications on the result of the Porsche SE group for the fiscal year 2016 can only be reliably assessed once Volkswagen group has conclusively evaluated the financial liabilities resulting from this settlement. At this point in time it cannot be ruled out that the Porsche SE group result after tax may fall below the previously communicated corridor between Euro 1.4 bn. and Euro 2.4 bn.

Finalizing the settlement would mark a key milestone in Volkswagen’s effort to emerge from the scandal that erupted in September 2015 after U.S. authorities uncovered the carmaker’s efforts to deliberately cheat on emissions tests on diesel vehicles. The rigged engines were ultimately installed in 11 million vehicles worldwide, and cost former Chief Executive Officer Martin Winterkorn his job.

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SMG's picture

This is gotta be the stupidest BS scandal.  Defraud retirees and investors of trillions: little or no punishment.  Slightly modify the exhaust output of some cars, oh crimes against humanity,  throw the book at them.  Billions in fines.  Corrupt a-holes.

Looney's picture

 

The settlement also requires Volkswagen to come up with a self-walking 0bama-walker.  ;-)

Looney

xythras's picture

Two, three more fines like this and the Great Wall of Trump is finished.

http://dailywesterner.com/cost-for-a-single-year-of-obamacare-exceeds-hi...

ElectroGravitic's picture

 

The settlement should require VW produce what Stan Meyer did in 1986.

 

VWAndy's picture

 Moving goal posts.

nmewn's picture

And diesel too.

You see, diesel is far more "environmentally friendly" than regular gas (petrol to my euro & latin friends) but good golly let someone stray from the path of involuntary regulatory righteousness (and the best marketing practices of Gaaarrreeennn-ish! progressive BS...lol) and its like government apparatchiks would never intentionally poison the water of Flint Michigan or a river basin out west!

Perish the thought!

I can hardly wait for the FBI to lay in ambush for past & present Fisker & Tesla employees & executives because of actual property damage and...ya know...death.

Wait, whatever am I saying? Those are the "good guys" ;-)

Golden Showers's picture

Fuck all of you. I took the catylitic converter out of my car and welded up 2inch exhaust because I don't give a fuck about emissions.

You know, I have lot's of emissions. Nocternal ones too. But it's all about MPG.

Raffie's picture

Now that is a fine, not this $3mil crap for a multiple trillion dollar scam.

shovelhead's picture

Nobody cares what you do.

You're unimportant.

xythras's picture

Golden Showers ARE important. Ask any European babe: 

http://www.xclips.tv/video/455/

Xena fobe's picture

Well, you have to if you have a high mileage engine.  Cats are just too expensive to be fouling them. Damn state thinks everyone is rich.  Good for you. 

Moe Hamhead's picture

Does Herr Schmidt get out of jail?

King Tut's picture

(((Uncle Sam))) loves to pound the Germans in the ass- doesn't he

Francis Marx's picture

All I can think of is all those GM , Ford engineers going crazy for years trying to figure out how Volkswagen was beating the system.. For what they have the many believe, it was those guys who pushed to get the cheating by VW issue figured out becouse they knew it was impossible to get the power and emissions that VW was supposely marketing.

localsavage's picture

Even after they fix the VW, it will still outpreform GM and Ford.  It is like 1.5-2mpg better with the cheater software.

Lynx Dogood's picture

So Mazda and Mercedes get off scot free after they where caught doing the same thing...... What a joke.

NurseRatched's picture

Where is the evidence of the Mazda diesel cheating you speak of? And since this is about cheating in the US, when did Mazda sell a diesel-powered vehicle in the US? Or do you work for CNN where the allegation is all the evidence you need?

CHoward's picture

VW to big to fail.  No one (person) goes to prison.  Of course!

King Tut's picture

If Jon Corzine didn't do time there is no way anyone from VW should either

VWAndy's picture

 Back in VW days when they first started testing for Nox we noticed Nox dropped during dyno testing on moist days bigtime. Cars that would not pass on dry days would pass easy on rainy days.

 To prove it all one needs to do is moisten the air filter.

SgtShaftoe's picture

This whole thing is absolutely fucking ridiculous.  "US car makers" can make massive diesel SUVs and trucks, but VW and any other company that produces a tiny car with a diesel lawn mower engine gets the shit slapped out of them for importing them to the US and lying about it.  Apparently only those in government are allowed to lie, and they do it continuously.  We need more Diesel vehicles in this country especially in the small to mid-sized car market.  Although their longevity is far to long for US car makers which is why they're blocked. 

Every time I see some idiot that has "tuned" their truck to "roll coal" it just pisses me off.  My 1964 JD tractor doesn't even make that kind of idiotic smoke.  I want a better market for 4wd SUVs with a diesel power plant.  They are awesome in the mountains.  We just have to settle for the gasoline pajeros, land cruisers, etc.  Though once in a while you'll find a diesel Jeep Liberty or Grand Cherokee, but they're about as rare as rocking horse shit. 

I don't give a shit if VW lied.  I view it as an act of civil disobedience.  The US laws are stupid.

VWAndy's picture

 % based test were BS from the start. Gave all the advantages to big wastefull V8s.

ipso_facto's picture

Which executives will be imprisioned for at least ten years?  Until this happens the 'punishment' is nominal.

nationstates's picture

Jail them !! Punish them !!! Show the world Just How Tuff Obama Is.

Gotta protect that environment...whilst eslewhere... this leak is good for another 100 years

 

http://www.ecowatch.com/the-biggest-oil-leak-youve-never-heard-of-still-...

Far away from TV cameras and under the radar of the nightly news, oil has been continuously leaking from a damaged production platform located just 12 miles off the coast of Louisiana in the Gulf of Mexico—causing an oily sheens on the surface that stretch for miles and are visible from space.

angry_dad's picture

This penalty will be negotiated down to nothing in the next few months as the MSM is distracted by TRUMPS frst 90 days of repealig obama care, tax changes, wall building, and import tariffs.

VW will commit to a bigger plant in the usa instead of the fine.

 

Xena fobe's picture

No no no, fight them VW!  Someone has to stop this.  Arresting car manufacturers but not bankers?  The whole world is upside down.

MiltonFriedmansNightmare's picture

So VW will pay a 4+ billion dollar fine to whom exactly? I don't see the beneficiary mentioned in the article.

ElectroGravitic's picture

Meanwhile the US Patent Office goes unpunished for suppression of clean energy devices, which could have eliminated the need for oil, gas, and nuclear energy many decades ago.

Atomizer's picture

Early this morning, someone posted this..

If VW manufacturered private email servers for Hillary Clinton, the FBI wouldn't find enough information to pursue prosecution. 

Not exactly the entire exact quote, added a few words. 

sinbad2's picture

Eventually the extortion will be more than the profits made in the US market, and companies like VW will withdraw from the US market.

Then everybody can drive a Chevy.

Fireman's picture

Germans (apart from STASI robot Fatty Merkill) are sick of the damn occupation and the entire Natostan Third World status of being Pentacon real estate for the anglozionazi global jihad against humanity, so the scum in Washing town have upped their economic war on said Krauts to remind them that their Deutsche Bank and VW will all pay the price for the general pivot to Russia. This is the last shakedown that Germans will pay the thugocracy and I wouldn't be surprised when the Natostan sewer in Brussels (capital of the ailing EUSSR) is finally rendered impotent by the remergence of the Europeon nation states along with the inevitable collapse of the Saudi Mercan dollah when all USSAN Pentacon Kill Industries personnel will be booted back to Slumville USSA. Germany is sick and tired of paying off the anglozionazis with their collective hollow cost guilt and this Mafia shakedown on VW, aka Onkel Adolf's pride and joy, has pissed more Germans off than a lot of the other degradation meted out to once proud Germans. USSA beware, they will be pushed only so far!

 

 

http://ericpetersautos.com/2017/01/05/kill-people-no-problem-just-dont-c...

 

 

IAMACP45's picture

VW pays a $4 Billion fine, and pleads guilty to criminal charges. What about all the US Banks that manipulate the currency markest, the precious metals market, sell doctored mortgages, etc. No one is charged, no one goes to jail, they simply pay a fine that is 1/10 the amount they stole. The world has gone totaly insane when you can go to jail for getting caught with an ounce of grass, but can steal billions, an not be charged with a crime.