Volkswagen AG (VW) has agreed with the EPA, the state of California, and the U.S. Federal Trade Commission (FTC) to an initial penalty settlement for alleged violations of federal and state laws following disclosures that the company installed emissions defeat devices in nearly 500,000 2.0-liter diesel vehicles sold in the United States between 2009 and 2015. In monetary terms, the company must pay up to $14.7 billion, with about $10 billion of that total directed toward compensating the purchasers of vehicles that did not meet on-road nitrogen oxides (NOx) emissions standards. The remainder is to be used to mitigate the pollution from these cars and advance California’s green vehicle technology.
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This is only the first phase of the penalty VW faces, covering allegations that the company cheated on emissions tests and deceived customers. VW is still facing pending claims for civil penalties, claims concerning 3.0-liter vehicles, and potential criminal liability