Volkswagen Owes California $86 Million in Penalties Over Emissions Scandal

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Volkswagen will pay an additional $86 million in penalties to California over its emissions scandal, on top of a settlement of about $15 billion that the automaker reached with U.S. officials last week, state Attorney General Kamala Harris said in a statement on Thursday.

The scandal has disrupted Volkswagen’s global business and sullied its reputation.

The office of Harris, a Democrat, said the $86 million in civil penalties resolved certain claims California officials made against Volkswagen under the state’s unfair competition law as well as under federal law.

“We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air,” said Harris, who is running for a seat in the U.S. Senate.

Volkswagen, the world’s second-biggest automaker, has admitted it used sophisticated secret software to cheat exhaust emissions tests, deceiving regulators and customers about pollution from its diesel engines.

A spokesman for Volkswagen did not immediately return a call seeking comment.

Under its previous settlement with the U.S. Department of Justice, the company will buy back or potentially fix about a half-million polluting diesel cars and set up environmental and consumer compensation funds.

SOURCE: Reuters