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| VW set to pay $4.3bn for emissions cheat | VW set to pay $4.3bn for emissions cheat |
| (35 minutes later) | |
| Volkswagen has agreed a draft $4.3bn settlement with US authorities over the emissions rigging scandal. | Volkswagen has agreed a draft $4.3bn settlement with US authorities over the emissions rigging scandal. |
| The German car maker also said it would plead guilty to breaking certain US laws. | The German car maker also said it would plead guilty to breaking certain US laws. |
| VW said it was is advanced discussions with the Department of Justice and US Customs about the deal. | VW said it was is advanced discussions with the Department of Justice and US Customs about the deal. |
| The final agreement has yet to be approved by VW's management and supervisory board, which could happen later on Tuesday or Wednesday. | The final agreement has yet to be approved by VW's management and supervisory board, which could happen later on Tuesday or Wednesday. |
| VW said it had negotiated a "concrete draft" of a settlement agreement with US authorities that included criminal and civil fines totalling $4.3bn (£3.5bn), as well as appointing an independent monitor for the next three years. | VW said it had negotiated a "concrete draft" of a settlement agreement with US authorities that included criminal and civil fines totalling $4.3bn (£3.5bn), as well as appointing an independent monitor for the next three years. |
| The $4.3bn fine means that the total costs associated with the emissions cheating scandal are set to exceed the $19.2bn the company has set aside to deal with the issue. | |
| VW has already agreed to a $15bn civil settlement with environmental authorities and car owners in the US. | |
| 'Major relief' | |
| The scandal erupted in September 2015 when the US Environmental Protection Agency (EPA) found that many VW cars sold in America had a "defeat device" - or software - in diesel engines that could detect when they were being tested and adjust the performance accordingly to improve results. | |
| The German car giant subsequently admitted cheating emissions tests in the US and many countries throughout the world, including the UK. | |
| Arndt Ellinghorst, head of global automotive research at Evercore ISI, the draft settlement was good news for VW and would "draw a line under all remaining US-related legal risk". | |
| It was important that VW had "managed to come to an agreement that allows the company to move on", he said, adding: "It's a major relief that this doesn't get dragged into the new US administration." | |
| Mr Ellinghorst expected the company to increase its provisions for diesel-related costs by up to €3bn to as much as €21bn. |