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GUILTY PLEA ON 3 COUNTS

VW has agreed to a series of measures to further
strengthen its compliance and control systems

Volkswagen agrees $4.3bn settlement in emissions case

WASHINGTON, January 12, 2017

Volkswagen has agreed with the US government to pay penalties and fines totalling $4.3 billion to resolve criminal and federal environmental and other civil claims into the German automaker's diesel emissions cheating.

The company has also agreed to a series of measures to further strengthen its compliance and control systems, including the appointment of an independent monitor for a period of three years.

“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,” said Matthias Müller, chief executive of Volkswagen Group.

“The agreements that we have reached with the US government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear. They are an important step forward for our company and all our employees.”

The resolution comprises four settlements, including a plea agreement with the US Department of Justice (DOJ). The plea agreement is accompanied by a published Statement of Facts that lays out the findings and facts established as to the origins and evolution of the misconduct in the diesel matter.

Volkswagen has agreed to plead guilty to three felony counts under US law. The plea agreement, which is subject to US federal court approval, provides for payment of a criminal fine of $2.8 billion and the appointment of an independent monitor for a period of three years.

The monitor will assess, oversee and monitor the company’s compliance with the terms of the resolution, including measures to further strengthen Volkswagen’s compliance, reporting and monitoring mechanisms and implementation of an enhanced ethics program.

Volkswagen has further agreed to pay a combined penalty of $1.45 billion to resolve US federal environmental and customs-related civil claims.

“When the diesel matter became public, we promised that we would get to the bottom of it and find out how it happened – comprehensively and objectively,” said Hans Dieter Pötsch, chairman of Volkswagen Group.

“In addition, a task force of our Group Audit function conducted an investigation into relevant processes, reporting and monitoring systems as soon as the issue came to light. We are no longer the same company we were 16 months ago. The Supervisory Board and the Management Board have faced up to past actions,” he added.- TradeArabia News Service




Tags: Volkswagen | Settlement |

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