Volkswagen nearing settlement in emissions inquiry case

An intensive investigation into the manipulation of emissions tests began more than a year ago

Volkswagen is nearing a deal to pay more than $2 billion to resolve a federal criminal investigation into its cheating on emissions tests, according to three people briefed on the negotiations.

The company or one of its corporate entities is expected to plead guilty to criminal charges as part of the deal, according to one of the people, although what those charges might be is unclear. The settlement could come as early as next week, barring any last-minute hiccups, those people said.

The German automaker is eager to put the Justice Department investigation behind it before President-elect Donald J Trump is sworn in on January 20, according to two others familiar with the company’s position.

An intensive investigation into the manipulation of diesel emissions tests began more than a year ago, and involves American and German investigators and prosecutors. A resolution of the criminal investigation in the United States would allow Volkswagen to try to move past a scandal that has hobbled its diesel car business.

The criminal case against Volkswagen, and the potential for a guilty plea, have set it apart from other recent auto industry investigations. In settlements with General Motors and Toyota over their handling of safety defects, for example, the companies agreed to pay large fines, but did not plead guilty.

Prosecutors are also mulling criminal charges against Takata, the Japanese manufacturer under criminal investigation for its defective airbags.

It is unclear whether prosecutors would also charge Volkswagen employees, but high-ranking Justice Department officials have forecast the possibility.