comscore Volkswagen to pay $157 million for violating emissions standards in the US
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Volkswagen to pay $157 million for violating emissions standards in the US

Volkswagen diesel cars were emitting over 40 times the permissible levels of nitrogen oxide during normal driving.

  • Published: March 31, 2017 9:00 PM IST
Volkswagen Tiguan begins production


German automaker Volkswagen AG said today it reached a settlement with 10 US states on environmental and consumer claims stemming from its emissions cheating scandal. The company has agreed to pay USD 157.5 million to the states, including New York, Massachusetts and Pennsylvania, resolving suits by the states against VW for violating emissions standards. Also Read - Volkswagen Taigun SUV special edition launched to celebrate car's first year in India

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“The agreement avoids further prolonged and costly litigation as Volkswagen continues to work to earn back the trust of its customers, regulators and the public,” VW said in a statement.

Volkswagen so far has agreed to pay out more than USD 20 billion in the US, including criminal penalties, to federal and state authorities, as well as consumers and car dealers, to resolve its “dieselgate” emissions cheating scandal which has rocked the company since 2015. Regulators discovered Volkswagen diesel cars sold as clean were in fact emitting as much as 40 times the permissible levels of nitrogen oxide during normal driving but were configured to hide this during emissions testing.

As many as 11 million vehicles sold worldwide were configured to cheat emissions testing. The company in June 2016 reached a USD 603 million agreement with 44 US states, the District of Columbia and Puerto Rico to resolve consumer protection claims. This did not address claims concerning 3.0 liter vehicles which were included in the latest settlement. VW has seen strong performance despite the crisis, recording USD 5.4 billion in profits last year after a nearly USD 2 billion loss in 2015. ALSO READ: Volkswagen begins production of upcoming SUV Tiguan at Aurangabad plant

The 10 states in the settlement had adopted the same emissions standards set by California, which are more stringent than federal law requires. The Trump administration vowed to roll back requirements for to increase fuel efficiency set by the previous Democratic administration but for now California, the country’s biggest auto market, retains the right to set tougher standards.

  • Published Date: March 31, 2017 9:00 PM IST
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