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Volkswagen Settles With Feds for $4.3B Over Emissions Scam

Plus, six VW executives and employees have been indicted in connection with the conspiracy.

 & Angela Moscaritolo Managing Editor, Consumer Electronics

Our team tests, rates, and reviews more than 1,500 products each year to help you make better buying decisions and get more from technology.

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Volkswagen has agreed to plead guilty and pay $4.3 billion in criminal and civil penalties in relation to its diesel emissions cheating scandal, the US Justice Department announced today.

Nextcar Bug artIn addition, six VW executives and employees have been indicted in connection with the conspiracy to cheat on emissions tests. That includes Oliver Schmidt, head of VW's regulatory compliance office from 2014 to early 2015, who was taken into custody by the FBI on Sunday while visiting Miami, and appeared in federal court there Monday.

In the fall of 2015, the German automaker admitted that 11 million of its diesel cars were equipped with sophisticated "defeat devices" used to cheat on emissions tests. The scam produced environmentally friendly results when tested. But take the car out on the road, and it pumped out 40 times the allowed amount of nitrogen oxide, a pollutant that causes asthma, bronchitis, emphysema, and generally adds to that gray haze surrounding most American cities at rush hour.

Other individuals criminally charged today for their alleged roles in the scheme include Heinz-Jakob Neusser, head of development for the VW brand; Jens Hadler, head of engine development; Richard Dorenkamp, head of VW's engine development after-treatment department; Bernd Gottweis, a supervisor with responsibility for quality management and product safety; and Jürgen Peter from the VW quality management and product safety group. Those five individuals are believed to be in Germany.

The settlement announced today includes a $2.8 billion criminal penalty and $1.5 billion in civil environmental, customs, and financial penalties. That's on top of a historic $14.7 billion civil settlement announced in June and a $1 billion settlement handed down in December.

About Our Expert

Angela Moscaritolo

Angela Moscaritolo

Managing Editor, Consumer Electronics

My Experience

I'm PCMag's managing editor for consumer electronics, overseeing an experienced team of analysts covering smart home, home entertainment, wearables, fitness and health tech, and various other product categories. I have been with PCMag for more than 10 years, and in that time have written more than 6,000 articles and reviews for the site. I previously served as an analyst focused on smart home and wearable devices, and before that I was a reporter covering consumer tech news. I'm also a yoga instructor, and have been actively teaching group and private classes for nearly a decade. 

Prior to joining PCMag, I was a reporter for SC Magazine, focusing on hackers and computer security. I earned a BS in journalism from West Virginia University, and started my career writing for newspapers in New Jersey, Pennsylvania, and West Virginia.

The Technology I Use

My little Florida beach bungalow is brimming with smart home tech. I have a smart speaker or display in every room, allowing me to control other connected devices by voice. The Nest Hub on my bedside table lets me set wake-up alarms, control my smart light bulbs, and set the temperature on my smart thermostat. I use the Amazon Echo Show 8 on my kitchen counter to browse recipes, reorder protein powder, check the weather, and watch the news while I do dishes. 

Because I suffer from allergies, air purifiers are essential. My favorite model is the Dyson Purifier Cool TP07, which doubles as a fan and continuously sends indoor pollution data to its companion mobile app. 

My pitbull Bradley sheds, so a good robot vacuum is a must. I currently use a premium Ecovacs Deebot that can both vacuum and mop, empty its own dustbin, and wash its own mop cloth. 

For fitness, I like to mix up my routine with cycling, indoor rowing, running, and strength training in addition to yoga. I take classes on the Tonal 2 smart strength training machine, I row indoors on an Aviron machine, and track my beach runs with an Apple Watch while listening to music on my Apple AirPods Pro. On the weekends, I love riding e-bikes like the rugged, beach-friendly Aventon Aventure for fun and fitness.

My job involves a lot of virtual meetings, so a quality webcam, microphone, and ring light are important. I use the Jabra PanaCast 20 webcam, the Elgato Wave: 3 microphone, and a Yesker tripod ring light. 

As for my preferred phone platform, I'm an iPhone person, but I've also extensively used Android for product testing.

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