VW to pay £2.2bn fine in US diesel emissions scandal

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Volkswagen has been ordered to pay a 2.8 billion dollars (£2.2 billion) criminal penalty in the United States for cheating on diesel emissions tests.

Detroit federal judge Sean Cox followed the deal negotiated by VW and the US Justice Department during sentencing on Friday, six weeks after the German car giant pleaded guilty to conspiracy and obstruction of justice.

VW admits that nearly 600,000 diesel cars in the US were programmed to turn on pollution controls during testing and off while on the road.

VW’s lawyer Jason Weinstein said the fine is an “appropriate and serious sanction”.

Separately, VW is paying 1.5 billion US dollars (£1.2 billion) in a civil case brought by the government and spending 11 billion US dollars (£8.5 billion) to buy back cars and offer other compensation.

Seven employees have also been charged.

Speaking from the bench in the heart of the global auto industry, Mr Cox said he was amazed VW would commit such a crime.

“Who has been hurt by this corporate greed? From what I can see it’s not the managers at VW, the ones who get paid huge salaries and large bonuses. As always it’s the little guy,” the judge said, referring to car buyers and VW’s blue-collar workers who might earn less in the future.

Five of the VW employees charged in the US are in Germany and are unlikely to be extradited.

Mr Cox urged the German government to “prosecute those responsible for this deliberate massive fraud that has damaged an iconic automobile company”.

VW general counsel Manfred Doess said the company is not the same one that was caught 18 months ago.

“Volkswagen deeply regrets the behaviour that gave rise to this case… Plain and simple it was wrong,” he said. “We let people down and for that we’re deeply sorry.”

AP

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