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VW to pay $US2.8 billion for US emissions

dpa logodpa 5 days ago

A federal judge in the US has ordered German carmaker Volkswagen to pay $US2.8 billion as a criminal penalty over a diesel emissions scandal.

German carmaker Volkswagen has been ordered to pay $US2.8 billion ($A3.7 billion) as a criminal penalty in the US as it struggles to end a long-running diesel emissions scandal that has engulfed the company.

The ruling by Federal Judge Sean Cox in Detroit on Friday comes six weeks after Europe's biggest carmaker pleaded guilty to conspiracy and obstruction of justice in the scandal, which erupted in September 2015 when it admitted to cheating on emissions tests around the world.

The penalty followed a deal negotiated between VW and the US Justice Department, which represented a further step by the company to draw a line under the scandal, which affects about 600,000 cars in the US.

Based in the northern German city of Wolfsburg, VW has already agreed to pay a total of $US4.3 billion in criminal and civil penalties.

The amount includes the $US2.8 billion in criminal penalties levied on Friday as well as $US1.5 billion to resolve environmental, customs and financial claims.

The carmaker has also launched moves to buy back cars equipped with the software that allowed it to cheat environmental tests. It is also offering compensation to car owners, which both measures expected to cost a total of $US11 billion.

Seven VW employees are facing charges in the US.

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