Volkswagen will have to commit over $200 million in a pollution reduction fund.
Volkswagen will have to commit over $200 million in a pollution reduction fund as the German car maker is still facing the repercussions of its emission scandal.
Volkswagen or VW is the flagship Volkswagen Group marque. It was founded in 1937 and is headquartered in Wolfsburg, Germany. The German company is considered to be amongst, if not the largest global automaker.
However, as of last year, the carmaker has been making headlines for another reason. In 2015, Volkswagen was involved in a massive emissions scandal.
At the time, the company was accused of emission software manipulation. The matter was signaled by the EPA or the United States Environmental Protection Agency. EPA pointed out that VW had improperly installed ECU software.
Such ECU or engine control unit software could manipulate environmental diesel emission values. As such, the company has reportedly sold more polluting cars than allowed.
The matter came to be known as the dieselgate scandal. It is still producing repercussions. Following an investigation, VW agreed to a settlement deal.
It involved the estimated 80,000 vehicles targeted by the inquiry. The 3.0-liter diesel cars were found to exceed the United States emission deals.
As part of the settlement, Volkswagen will also be committing to a pollution reduction fund. Reports show that VW will be investing over $200 million.
An official statement regarding the matter has yet to be released. It is expected to be announced this Monday. The money would be invested in an environment-related fund. Its purpose is to cut back on diesel pollution.
With a more than $200 million value, the commitment may mark an unexpected environmental benefit. Following its official announcement, it will come as an added bonus. The carmaker has already agreed to a number of other important investments.
As such, it will also be paying emission reparation costs. These are expected to amount to a $2.7 billion sum. They will be targeting about 500,000 2.0-liter diesel cars.
The new pollution fund commitment is just the latest commitment. As a complete settlement has not been reached, it may also not be the last.
Volkswagen is still suffering from the dieselgate scandal. As more than a year has passed, the company is still involved in a number of lawsuits.
Reports state that the carmaker is still in negotiations with the U.S. Federal Trade Commission. Charles Breyer, the U.S. District Judge, released a few statements.
Breyer oversaw the negotiations. According to him, the parties have marked a “substantial progress”. The Judge also stated his optimism in terms of the parties reaching a resolution.
It remains to be seen if Volkswagen will officially announce the emission reduction fund commitment. If it does, it will significantly increase its settlement investments.
As such, it would have spent up to $16.7 billion. The estimated sum should include all current cheating accusation investments.
Still, the value is expected to grow. The German carmaker is still involved in a number of lawsuits. Besides customer claims, VW is also involved in another U.S. settlement.
This involves the United States Justice Department. Volkswagen is the accused party of an on-going criminal investigation. It is also involved in a civil suit.
The suit claims that VW did not respect the Clean Air Act. If either or both these suits will be lost, Volkswagen is expected to pay a few billions more in fines.
Volkswagen has been banned from selling diesel vehicles. The ban started being applied in the United States. It was decided upon following the September 2015 emissions scandal.
The faith of Volkswagen diesel vehicles sales in the U.S. has yet to be decided.
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