Md. Reaches $33.5 Million Settlement With Volkswagen
BALTIMORE (WJZ) -- Maryland has reached a $33.5 million settlement with Volkswagen AG for using defect car devices that violated the state's environmental laws.
It was a public relations nightmare.
"On behalf of our company and my colleagues in Germany and me personally, I would like to offer a sincere apology," said former CEO of Volkswagen Michael Horn.
The error has been costing Volkswagen and two of its affiliates hundreds of millions since the emissions cheating scandal came to light in 2015.
"Emissionsgate" or "Diesel Dupe," as some referenced the end result of a federal investigation that found the car marker was using sophisticated software in some of their cars to cheat U.S. emissions standards.
In short, buyers like Nicole Barnard from Maryland ended up with a car that was polluting the air 10 to 40 times more than allowed by federal standards.
"This wasn't, 'Oops we messed up,' you know? This was, 'You know, we intended to deceive,'" she said in 2016.
Though it has been years since some impacted car owners settled on their lawsuits against the company, states like Maryland are just now settling their cases for the harm done to the environment.
"It's a big penalty, but they did a big wrong," said Maryland Attorney General Brian Frosh.
Frosh announced the settlement with Volkswagen, which is on top of the millions the company has already paid the state in the past settlements.
The terms of this one, however, include things like a $4.5 million dollar credit if the company enters into an agreement with the Port of Baltimore to do business, as well as make more zero-emissions cars available in the state.
"This not only holds them accountable but sends a message to other people who think they can cheat the state of Maryland and pollute our air an water," said Frosh.
Volkswagon issued the following statement to WJZ Wednesday night:
"The agreement with Maryland is an important step forward for Volkswagen in resolving legacy exposure to state and local environmental claims related to the diesel matter in the United States. Following a recent federal court ruling, we consider the few remaining environmental claims pending in state courts to be preempted by federal law."
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