Settlement agreement by NOx scandal to cost Volkswagen over 4.3Bn

Following the communication issued by Volkswagen on 21st december related to the negotiations on an agreement to settle all claims by the NOx emissions scandal in the USA, the German automotive multinational confirms again that it is in advanced discussions with the US Department of Justice and U.S. Customs and Border Protection, that there’s a draft of agreement and adds that the agreement includes criminal and civil fines with a total amount of USD 4.3Bn.

Volkswagen recognizes that in case of a settlement agreement, the payment obligations are expected to lead to a financial expense that exceeds the current provisions. The concrete impact regarding the annual result 2016 cannot be defined at present due to its dependency on various further factors.

Other measures included in the pact

The draft also includes measures to further strengthen the Compliance- and Control-Systems including the appointment of an Independent Monitor for the next three years. Further, part of the settlement agreement is a Guilty Plea regarding certain US criminal-law provisions and a Statement of Facts on the basis of which the fines have to be made.

Still subject to approval by Volkswagen, other companies and the US Authorities

The final conclusion of the settlement agreement is still subject to the approval by the Management Board and the Supervisory Board of Volkswagen AG and by the competent corporate bodies of further Group Companies involved. The competent corporate bodies will deal with this issue in the very short term, possibly even during today, the 10 January 2017 or tomorrow, the 11 January 2017. A final conclusion of the settlement agreement is further subject to the execution by the competent US authorities and to the approval of the competent US courts.

Image over the headline.- © Volkswagen-Audi Group.

Related Eastwind links:

Volkswagen reaches agreement to settle all claims related to the NOx emissions scandal in the USA

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