Volkswagen announces 'concrete draft of a settlement' with US for $4.3 billion over emission scandal

Volkswagen: Draft deal has $4.3B in fines

Volkswagen said on Tuesday it negotiated a concrete draft of a settlement with U.S. authorities over the company's diesel emissions scandal.

The German automaker said the settlement, regarding certain criminal investigations and certain civil fines in connection with the Diesel issue, with the U.S. Justice Department and U.S. Customs and Border Protection could total $4.3 billion.

Part of the final agreement includes a guilty plea by the company regarding certain U.S. provisions and a "Statement of Facts" on the basis of which the fines have been made, Volkswagen said.

The German automaker faced major fines after it was caught last year cheating on American air pollution tests by the EPA. The scandal has damaged the company's reputation and hurt its sales.

Volkswagen has repeatedly said no current or former board members were involved in the cheating. The company said it did not release information sooner because it expected to reach a negotiated settlement with U.S. regulators.

The final conclusion of the settlement agreement is still subject to the approval by the Management Board and the Supervisory Board of Volkswagen and by the competent corporate bodies of further Group Companies involved.

The deal with the Justice Department comes as the carmaker aims to rebuild its long-struggling business in the United States, where the decline in VW brand sales last year accelerated to 8 percent.

—Reuters contributed to this report.