Volkswagen to face criminal charges in Dieselgate scandal; negotiations underway

Volkswagen could face criminal charges in the US which will result in significant penalties. Negotiations for a settlement are underway.


The final verdict on the Volkswagen diesel emission case might come in soon as The Wall Street Journal has reported that the German car maker will be facing criminal charges in the United States. The charges could result in significant financial penalties as Volkswagen and Department of Justice prosecutors are said to be in negotiations with Volkswagen. The settlement could be finalised by the end of this year, although the information is not confirmed.

Currently the prosecutors are wondering if they should seek a guilty plea to criminal charges from Volkswagen or if the Department of Justice should set up a deferred prosecution agreement where charges could be dismissed if the company sticks to settlement terms.

The German car manufacturer admitted in September to installing software to cheat on emissions tests in 11 million diesel cars. Of these, 8.5 million were sold in Europe. Volkswagen had reached a $14.7 billion deal with federal regulators over Dieselgate back in June, including an offer for the buyback of affected vehicles. Weeks later the company was sued by several US states for violating a number of state environmental statutes. The various criminal charges, civil lawsuits and settlements will continue and could cost Volkswagen billions of dollars in penalties.

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