WOLFSBURG (dpa-AFX) - The U.S. Justice Department said that Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) supplier IAV GmbH has agreed to plead guilty and pay a $35 million fine for its role in the German auto giant's emissions-cheating scheme.
The Justice Department noted that IAV GmbH, a German company that engineers and designs automotive systems, has agreed to plead guilty to one criminal felony count and pay a $35 million criminal fine as a result of the company's role in a long-running scheme for Volkswagen AG to sell diesel vehicles in the United States by using a defeat device to cheat on U.S. vehicle emissions tests required by federal law.
IAV is charged with and has agreed to plead guilty to one count of conspiracy to defraud the United States and VW's U.S. customers and to violate the Clean Air Act by misleading the EPA and U.S. customers about whether certain VW- and Audi-branded diesel vehicles complied with U.S. vehicle emissions standards.
The Justice Department noted that IAV and its co-conspirators knew the vehicles did not meet U.S. emissions standards, worked collaboratively to design, test, and implement cheating software to cheat the U.S. testing process, and IAV was aware the VW concealed material facts about its cheating from federal and state regulators and U.S. customers.
Under the terms of the plea agreement, which must be accepted by the court, IAV will plead guilty to this crime, will serve probation for two years, will be under an independent corporate compliance monitor who will oversee the company for two years, and will fully cooperate in the Justice Department's ongoing investigation and prosecution of individuals responsible for these crimes.
In March 2017, Volkswagen pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the EPA and the California Air Resources Board, by installing defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests. As part of its plea agreement with the Department, Volkswagen paid a criminal fine of $2.8 billion and agreed to an independent corporate compliance monitor for three years. Eight individuals were previously indicted in connection with this matter, two of whom have pleaded guilty and been sentenced. The other six charged defendants are believed to reside in Germany.
Copyright RTT News/dpa-AFX