VW Agrees To Spend up to $14.7 Billion To Settle Allegations of Cheating Emissions Tests
Volkswagen agreed to spend up to $14.7 billion to settle charges that it cheated federal and California emissions tests, also resolving violations related to the importation of vehicles that did not match certificates of conformity on file with the Environmental…
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Protection Agency (see 1601050032), the Justice Department said June 28 (here). Of that total, $10 billion must be set aside for buybacks, lease terminations and modifications of affected vehicles, which include 2009 through 2015 car models with diesel engines, and another $4.7 billion will be designated for mitigating pollution and making investments to support zero-emission vehicle technology, it said. The Justice Department alleged Volkswagen equipped some of its cars with “defeat devices” that turn on full emissions controls only during EPA and California emissions testing, rendering them inoperative under normal driving conditions and “greatly increasing emissions.” VW did not list the devices on its EPA certificates of conformity, and they were in any case not legal for importation. The settlement also resolves unfair advertising charges brought by the Federal Trade Commission, as well as allegations of violations of California state laws.