Politics

Volkswagen: Settlement with private plaintiffs and U.S. Federal Trade Commission reached

Volkswagen AG and Volkswagen Group of America, Inc. have reached proposed agreements to resolve outstanding civil claims regarding approximately 78,999 affected 3.0L TDI V6 diesel engine vehicles in the United States. Two agreements have been submitted to the Court for approval concerning a class settlement with private plaintiffs on behalf of a nationwide class of current and former owners of 3.0L TDI vehicles, and a proposed Consent Order submitted by the U.S. Federal Trade Commission.

With the 2.0L TDI program already on the way, this settlement would cover the remaining “diesel affair”-vehicles and offer resolutions to the customers. The settlement includes a set of actions, including vehicles to be recalled and repaired, free of charge to the customer, in order to bring them into compliance with the emissions standards to which they were originally certified, and buy back or offer trade-in credits of equal value for other cars. The program will start as soon as the Court grants final approval to the settlement agreements. At the earliest, approval will occur in May 2017.

Volkswagen: Settlement with US authorities on the so-called “diesel matter” reached

Volkswagen AG confirmed that it has reached an agreement with the US Government Department in order to resolve criminal and federal environmental and other civil claims against the company relating to the so-called “diesel affair.” As part of the settlement, Volkswagen has agreed to pay penalties and fines totaling $4.3B, as well as implement a series of measures to strengthen its compliance and control systems, including the appointment of an independent monitor for a period of three years. The resolution comprises four settlements, including a plea agreement with the U.S. Department of Justice. 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 affair”.

Volkswagen also stressed that since the end of September 2015, the company has taken significant steps to address the “diesel affair” and to realign the group. The initiatives implemented include enhanced operational processes, and reporting and control systems to ensure responsibilities are clear; a more robust whistleblower system and new, stricter standards in its emission testing practices. Volkswagen has substantially elevated its commitment to working ethically and with integrity and is decentralizing how Volkswagen is managed by granting its brands and regions much more autonomy. According to the statement, these and other substantive actions across the group are part of a broader transformation of Volkswagen´s corporate culture in order to create a more entrepreneurial and international organization.