Volkswagen Aims to Clear the Air With $15B US Settlement


Volkswagen on Tuesday announced that it has reached an agreement to settle claims arising from the emissions scandal that has plagued the company since its discovery two years ago.

The company has agreed to set up a US$10 billion funding pool to buy back or terminate leases of diesel vehicles sold in the United States. Volkswagen had used software to cheat on emissions tests in labs for its turbocharged direct injection diesel engines.

The vehicles emitted up to 40 times more nitrogen oxides in real-world driving than the company registered in lab tests using the deceptive software. Volkswagen had put the software in about 11 million cars worldwide, of which about 500,000 were in the United States.

The vehicles in question were from the model years 2009 through 2015.

Volkswagen also agreed to establish a $2.7 billion environmental remediation fund, and to invest $2 billion to promote adoption of zero-emissions cars in the U.S.

The Department of Justice, the State of California, the Federal Trade Commission and certain private plaintiffs have agreed to the deal, which also must be approved by Judge Charles Breyer of the U.S. District Court for the Northern District of California.

The DoJ early this year filed suit against Volkswagen and associated companies over the emissions scandal, and the FTC in March filed its complaint in federal court.

German prosecutors earlier this month began investigating former VW employees, including former CEO Martin Winterkorn, over allegations of fraud and market manipulation in relation to the emissions scandal.

Other countries' regulators also are examining VW closely.

The company's next course of action is to tackle the international problem, said Praveen Chandrasekar, a research manager at Frost & Sullivan.

"VW is rumored to have set aside almost 16 billion euros (US$18.2) for the scandal at the worldwide level," he told the E-Commerce Times.

"A penalty should be large enough so that not only doesn't the offending firm repeat its crime, but also no other firm even thinks of doing something like this," commented Rob Enderle, principal analyst at the Enderle Group.

The emissions scandal was brought to light "by pure chance, which means the government wants to use fear as its primary method for compliance," he told the E-Commerce Times.

The scandal "showcases the importance of governance and internal audit to catch things like this," Enderle suggested. "This is a huge reminder that strong compliance and internal audit programs can literally save companies billions."

Richard Adhikari has written about high-tech for leading industry publications since the 1990s and wonders where it's all leading to. Will implanted RFID chips in humans be the Mark of the Beast? Will nanotech solve our coming food crisis? Does Sturgeon's Law still hold true? You can connect with Richard on Google+.

0 Comment

Leave a Reply

Captcha image


  • 5300c769af79e

    Liar, Liar, iPhone on Fire? Report Says Android Users More Honest

    You might be more honest than your iPhone-toting friends, according to a new study from researchers in the UK.The study revealed that iPhone users are more likely to be younger, female, and to see their phone as a status object.
  • 5300c769af79e

    When silent mode isn’t enough, seal your phone in the signal-killing Pause box

    At home, at work, in the meeting room, even in the bathroom — our smartphones are always on and always with us.“It was only when he suddenly shouted, ‘Put your phone away’ that I realized how wrapped up in my phone I had been,” Lazi told Digital Trends.
  • 5300c769af79e

    Familoop Safeguard (for Android)

    Compare Similar ProductsCompare Norton Family Parental Control (for Android) %displayPrice% Net Nanny (for Android) %displayPrice% Qustodio Parental Control (for Android) %displayPrice% Mobicip (for Android) %displayPrice% ESET Parental Control (for Android) %displayPrice% Familoop Safeguard %displayPrice% ContentWatch Net Nanny 7 %displayPrice% Qustodio Parental Control 2015 %displayPrice% Symantec Norton Family Premier %displayPrice% Familoop Safeguard (for iPhone) %displayPrice% Your $39.Shared FeaturesAs with Net Nanny (for Android), Qustodio Parental Control (for Android), Norton Family Parental Control (for Android), and other modern parental control systems, Familoop's configuration and reporting takes place entirely online.
  • 5300c769af79e

    WhatsApp Users Make 100M Calls Per Day

    Traditional phone calls are going the way of landlines as more people turn toward all-in-one communication apps to connect with family and friends.After teasing voice calling during Mobile World Congress 2014, WhatsApp made good on its promise last March, launching the service for all Android users.