In a historic civil settlement, VW will buy back or repair cars sold as "clean" but that in fact polluted above legal levels. The company will also pay nearly $5 billion for environmental reparations.
The agreement addresses "what to do about the 2-liter diesel cars on the road and the environmental consequences resulting from their excess emissions," the Justice Department says.
Speaking with NPR, Matthias Mueller blamed the problem on a misunderstanding of U.S. law and said the company doesn't have an ethics problem. Less than a day later, he asked to clarify those remarks.
Volkswagen has acknowledged that millions of its diesel cars worldwide relied on a ruse to skirt emissions controls. The EPA says the two sides haven't agreed on how to handle a recall.
Volkswagen will be putting projects on hold — including the launch of an all-electric Phaeton sedan — to try to get on solid financial footing as it grapples with an emissions cheating scandal.
The company says vehicle owners who apply to receive a $500 prepaid Visa card, a $500 dealership card and three years of free roadside assistance won't give up their right to sue.
The U.S. government says the German automaker's software allowed 10,000 more diesel cars than it had acknowledged earlier to run more cleanly during emissions testing than in real-world conditions.