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German company involved in VW fuel emissions fraud to pay $35 million

By Marian Johns | Dec 21, 2018

WASHINGTON, D.C. — A German company involved in Volkswagen AG's (VW) diesel fuel emissions fraud has pleaded guilty to a criminal felony and will pay $35 million, according to the U.S. Department of Justice (DOJ).

IAV GmbH (IAV), which took part in using a "defeat device" in order to pass United States vehicle emissions tests on VW automobiles sold in the U.S., entered a guilty plea for defrauding VW's car owners and violating the Clean Air Act. According to the Justice Department, IAV knowingly used software to evade U.S. testing by the Environmental Protection Agency.

“[This] guilty plea shows that this scheme to evade automotive emissions tests and cheat the American public and the U.S. government extended well beyond Volkswagen,” principal deputy assistant attorney general John Cronan said in a statement. “Our investigation into emissions cheating is ongoing and we will follow the evidence wherever it leads.”

“By helping VW cheat on U.S. emissions tests in violation of the Clean Air Act, IAV put its corporate success over public health and unfairly disadvantaged its competitors,” added deputy assistant attorney general Elliot Williams. “The Department of Justice will continue to work with its law enforcement partners to ensure that companies like IAV play fair, and that all Americans can enjoy the protections of our nation’s environmental laws.”


As part of the plea agreement, IAV will serve two years' probation, will have an independent corporate compliance monitor and will cooperate with the DOJ's ongoing investigation, the department said. 

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