VW Faces Criminal Case in Emissions Fraud

February 1, 2018

The Wall Street Journal reports IAV GmbH, a Berlin-based engineering company, is likely to face allegations that it aided Volkswagen's efforts to defeat U.S.emissions tests and regulations on diesel-powered vehicles using llegal software.

Volkswagen owns 50 percent of IAV GmbH with its subsidiary, IAV Automotive Engineering Inc., in Northville, Michigan. IAV designs products and provides testing support for powertrain, electronics and vehicle development in the automotive industry.

IAV is reportedly negotiating a settlement with Justice Department prosecutors, although a spokeswoman said in a statement: “While we cannot confirm or deny the existence of an investigation, the Justice Department is committed to holding both corporations and individuals accountable to the rule of law, and to protecting U.S. consumers and the environment.”

Last year, Volkswagen pleaded guilty to criminal charges in the emissions fraud scheme. The company agreed to pay penalties of more than $20 billion to settle suits brought by customers and state and federal prosecutors.

So far, eight people have been charged in criminal investigations of Volkswagen's emissions conspiracy. Two are serving prison time in the U.S., the other six have fled the country.

The Justice Department is also investigating other auto makers and suppliers for alleged emissions violations.

For more on this story, read the Journal's Volkswagen Supplier to Face Criminal Case in Emissions Fraud here.