Late yesterday, Volkswagen confirmed it had negotiated a $4.3 billion draft settlement with the U.S. Justice Department, and will plead guilty to criminal misconduct to resolve its diesel emissions cheating.
The guilty plea is part of the civil and criminal settlement that enables the German automaker to move forward in the process of restoring it’s tarnished image.
It is expected that the company’s supervisory board will approve the settlement by tomorrow. U.S. courts must still approve the settlement.
Volkswagen said with the addition of the fine, its costs will exceed the nearly $19.2 billion it has set aside to handle the diesel problem, Automotive News reported.
The company also said it will face an oversight monitor for the next three years.
SEE ALSO: VW Regulatory Compliance Officer Arrested For Diesel Emissions Fraud
Volkswagen admitted in September 2015 that it installed secretive software on about half a million diesel cars sold in the U.S. from 2009 to 2015 that could detect when the car was undergoing emissions testing and adjust its nitrogen oxide emissions to meet U.S. standards.
When the software recognized the car was driving on the road, however, it would allow emissions up to 40 times higher than the standards permitted.
The company has already agreed to spend up to $17.5 billion in the U.S. to repair or buy back the polluting vehicles and set aside money for environmental mitigation and the development of zero-emissions technology.
Despite its soiled reputation, Volkswagen said yesterday that it had record sales in 2016 of 10.3 million vehicles, a figure that should make it the world’s largest car producer by volume for the year.
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