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Volkswagen granted extension to comply with US diesel settlement

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Volkswagen granted extension to comply with US diesel settlement

Volkswagen AG said Oct. 17 that the U.S. Department of Justice approved the German carmaker's request for additional time to demonstrate its compliance with terms of its 2017 settlement with the U.S. government over the diesel emissions scandal.

The German carmaker was granted an additional 90 days to test and, if needed, fix measures that the group and its brands have put in place to meet its commitments under the settlement.

The U.S. Department of Justice, through its independent compliance monitor, Larry Thompson, will now take a decision on Volkswagen's ethics and compliance programs after the company submits its report by July 2020.

In a statement, Thompson said the extension will provide additional time "to ensure implementation of a high quality, reliable testing regime that can lead to certification as set forth in the monitor's responsibilities" in the settlement.

The emissions-cheating scandal for which Volkswagen has publicly apologized in the U.S. has so far cost the group about €30 billion.

In March, Volkswagen faced another lawsuit in the U.S., this time from the securities regulator, which accused the company of defrauding U.S. investors by making "deceptive" claims about its diesel cars to raise debt. In August, a U.S. federal judge in San Francisco urged both Volkswagen and the SEC to resolve the fraud suit.

Back in Germany, Volkswagen is facing a class-action lawsuit involving 400,000 car owners over the emissions scandal. Additionally, the group's CEO Herbert Diess, Chairman of the supervisory board Hans Dieter Potsch and former CEO Martin Winterkorn were indicted by German prosecutors over market manipulation, a charge that the group rejected as "groundless."