Volkswagen and Audi have agreed to pay $85 million in a settlement in principle over violations of Texas environmental laws related to the diesel cheating scandal. The settlement requires the German automakers to pay a civil penalty of $85 million for their unlawful actions. The Texas Supreme Court recently ruled that the state’s environmental lawsuit against Volkswagen and Audi could proceed. Volkswagen had previously settled with the US government for more than $20 billion, but that did not protect it from local and state government liability. Volkswagen disclosed in 2015 that it had used sophisticated software to evade emissions requirements in nearly 11 million vehicles worldwide.
The settlement with Texas Attorney General Ken Paxton marks the latest legal action against Volkswagen and Audi over their use of illegal emissions-cheating software. The automakers have faced numerous lawsuits and regulatory actions globally since the scandal was exposed in 2015. Volkswagen has already paid out billions of dollars in settlements and fines, including $15 billion in a US settlement over the scandal.
The $85 million settlement with Texas reflects the state’s determination to hold companies accountable for violating environmental laws. Paxton said, “If a company thinks they will avoid accountability when they violate Texas laws, endanger Texans, and pollute our environment, they’re dead wrong. Volkswagen and Audi are finding that out the hard way, and now they are paying the price.”
Volkswagen’s US subsidiary had unsuccessfully argued in 2021 that only the federal government could pursue emissions claims under the Clean Air Act, a landmark US environmental law. The company’s legal troubles are far from over, with ongoing lawsuits in several other states and countries. Ohio settled with VW for $3.5 million in 2022, which was a small fraction of what the state had initially sought. VW had argued in court papers that Ohio’s claims could have totaled “$350 million per day, or more than $127 billion per year, over a multi-year period.”
The Volkswagen scandal has had far-reaching consequences, not only for the company but also for the wider auto industry. The scandal has led to increased scrutiny of emissions standards and testing procedures, as well as a shift towards electric and hybrid vehicles. The scandal has also damaged Volkswagen’s reputation and led to significant financial losses for the company.
In conclusion, Volkswagen and Audi have agreed to pay $85 million in a settlement over violations of Texas environmental laws related to the diesel cheating scandal. The settlement reflects the state’s determination to hold companies accountable for violating environmental laws. Volkswagen’s legal troubles are far from over, with ongoing lawsuits in several other states and countries. The scandal has had far-reaching consequences, not only for the company but also for the wider auto industry.
