Cape Town - Volkswagen has given details about a change process that will “transform its core business” after admitting guilt this week in the emissions scandal and agreeing to pay a total of $4.3 billion in penalties in the US.The total fine, significantly more than the $1.2 billion penalty against Toyota in 2014 over safety issues related to unintended acceleration, is reported to be the largest ever levied by the US government against a carmaker.
Volkswagen admitted in September 2015 that it had concealed software in vehicles to make them seem cleaner than they were in emissions tests, with some of the cars emitting many multiples of the legal pollution levels.
The company said in a statement released on Wednesday that it had taken significant steps to address the issue and “realign the group for the future”.
“The initiatives Volkswagen has implemented in response to the diesel matter include enhanced operational processes and reporting and control systems to ensure responsibilities are clear, a more robust whistle-blower system and new, stricter standards in its emissions testing practices,” it said.
“Independently of the events that led to the diesel matter, the Volkswagen group will leave no stone unturned to prevent violations of any rules and identify such violations as early as possible.”
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The statement added: “The change process now under way is the biggest in Volkswagen’s history and will transform its core business.”
VW said the settlement agreement covering “criminal and federal environmental and other civil claims” in the US included the appointment of an independent monitor for three years.
Volkswagen CEO Matthias Müller said: “Volkswagen deeply regrets the behaviour that gave rise to the diesel crisis. We will continue to press forward with changes to our way of thinking and working.” The resolution comprises four settlements, including a plea agreement with the U.S. Department of Justice, which is accompanied by a published statement of facts that lays out the findings and facts established about the misconduct.
Volkswagen has agreed to plead guilty to three felony counts under US law and pay a criminal fine of $2.8 billion.
The company has agreed to pay a combined penalty of $1.45 billion to resolve U.S. federal environmental and customs related civil claims. The final part of the settlement is a civil penalty of $50 million.
VW said the agreements resolved Volkswagen's liability under US law only.