Volkswagen will pay an additional $86 million to California on top of more than $1 billion awarded to the state as part of a national settlement of its diesel emissions scandal.
California Attorney General Kamala Harris on Wednesday announced the additional civil penalties under a “second partial settlement” with the embattled German automaker.
Last week, the automaker and federal authorities announced a $14.7 billion settlement, $10 billion of which will be used to buy back or repair about 475,000 2.0-liter vehicles.
Of the remaining $4.7 billion in environmental mitigation and research funds, California will receive nearly $1.2 billion.
The latest settlement resolves claims levied by the state under its Unfair Competition Law, as well as federal consumer protection laws. Harris said it was the largest amount ever recovered by the state from an auto company.
“This additional settlement sends an unequivocal message to Volkswagen and any other automaker that California will aggressively enforce our robust consumer and environmental protection laws,” Harris said.
The bulk of the payment, Reuters reported, would help defray the state’s legal costs. Harris said that $10 million would fund research to detect emissions cheating, assess on-road emissions levels and evaluate the environmental impact of vehicle emissions.
The second settlement, which is pending approval by a court, also includes requirements that VW disclose its future use of defeat devices, along with subsequent violations and whistleblower complaints.
Although the settlement applies to both 2.0-liter and 3.0-liter diesel engines, California — along with federal prosecutors — continues to work on a settlement for buy-backs and environmental relief for 3.0-liter vehicles.
California officials also could pursue additional criminal charges or civil claims for violations of the state’s environmental laws.
Filed Under: Industry regulations