German Auto Supplier IAV to pay $35 million fine for conspiring with VW


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German Auto Supplier IAV to pay $35 million fine for conspiring with VW

The German Auto Supplier IAV Gmbh had agreed to plead guilty, being accused of scheming with Volkswagen AG in its act of evading US diesel emission standard. According to the US justice department, the German Auto Supplier acknowledged their act of mischief in the wrongdoing of VW AG, as it had been assisting to evade the US’s diesel emission standard.

According to the US department of Justice, the IAV would serve two years of probation period and would be under observation of an independent monitor. In fact, previously, the Volkswagen had agreed to pay a hefty amount of $25 billion in the US, as an attempt to pay claims from vehicle owners, auto dealers and environment regulators.

The Assistant administrator of the US environmental protection agency had been quoted saying that the IAV had designed the software, which allowed Volkswagen to cheat the US air emission standard. While announcing the verdict, the US justice department said that they could have applied a higher fine, but it might have jeopardized the viability of the company and that was why, they had confined to a “softened penalty.

As a response, the President and member of the IAV management board, Kai-Stefan Linnenkohl, “We take these matters very seriously and see this resolution as an important step forward for our company. The misconduct identified does not reflect who we are as a company today. We are committed to a culture of compliance and accountability. ”