Volkswagen ordered to pay $2.8 billion in USA diesel emissions cheating scandal

Sentence next for Volkswagen in US diesel emissions scandal

A federal prosecutor on Friday confirmed that the government plans to name former deputy US attorney general Larry Thompson to serve as independent monitor of Volkswagen AG under a plea agreement over its diesel emissions scandal.

District Judge Sean Cox approved deal and fine - the largest ever levied by the USA government against an automaker - negotiated by VW and the Justice Department during a Friday hearing in Detroit.

The $2.8 billion fine is part of a larger $4.3 billion settlement reached in January between Volkswagen and the the U.S. Justice Department.

VW admitted more than 500,000 diesel cars in America were programmed to turn on pollution controls during emissions testing and then turn them off while on the road.

In his ruling on Friday, Judge Cox said, "I can't believe the VW is in this situation that it finds itself in today". "This is a very serious and very troubling case involving an iconic automobile company", Cox added.

In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and to make buy-back offers.The U.S. Justice Department has also charged seven current and former VW executives with crimes related to the scandal.

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"This conduct was not consistent with the values of this company and plain and simple it was wrong".

With the criminal fine, Volkswagen's legal settlements stemming from its emissions fraud could exceed $25 billion in the USA alone depending on how many vehicles the auto maker is forced to repurchase. "We let people down and for that we're deeply sorry". The announcement comes six weeks after the German automaker pleaded guilty to conspiracy and obstruction of justice.

"The sentencing of Volkswagen marks a significant milestone in this historic case", Acting U.S. Attorney Daniel Lemisch said in a statement.

Volkswagen has pleaded guilty to cheating efforts on emission tests and will pay $4.3 billion.

On the other hand, Volkswagen General Counsel Manfred Doess told the court that the company "deeply regrets the behavior that gave rise to this case". He faces up to 20 years in prison on the wire fraud charges.

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