Volkswagen AG will pay $4.3 billion to settle its U.S. diesel emissions scandal and will plead guilty to criminal misconduct, the automaker said January 10.
The draft settlement and guilty plea, as well as an agreement to allow an independent monitor to oversee its operations, are part of its plans to rebuild its reputation, Reuters reports.
The civil and criminal settlement will be approved by the automaker’s supervisory board January 10 or 11, VW said.
VW admitted September 2015 to installing “cheat devices” in roughly 580,000 diesel cars sold in the U.S., hidden pieces of software that would allow the cars to trick emissions regulations tests.
On January 9 a top VW executive was arrested in connection with the installation of those cheat devices and charged by U.S. prosecutors with “conspiracy to defraud the United States.”
Oliver Schmidt, general manager in charge of VW’s Michigan-based environmental and engineering office, is the second executive charged with concealing information from regulators. He was arrested in Florida trying to return to Germany from a vacation in the U.S. state.
“The Justice Department settlement with VW will not end the Justice Department’s investigation into individual misconduct and more executives may face charges,” sources told Reuters.