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VW agrees to $US4.3b diesel settlement

 

Volkswagen AG has agreed to a $US4.3 billion ($A5.8 billion) settlement to resolve the US government's civil and criminal investigations into the German automaker's diesel emissions cheating, two sources said.

US Attorney General Loretta Lynch and Environmental Protection Agency chief Gina McCarthy will announce the settlement in Washington on Wednesday.

Prosecutors may charge additional individuals with criminal conduct as early as today, the sources said.

On Monday, a VW executive, the second VW employee charged by U.S. prosecutors, was accused of conspiracy to defraud the United States over the company's emissions cheating and the automaker was charged with concealing the cheating from regulators.

The settlement doesn't impact the government's ongoing investigation into individual misconduct by current and former VW employees.

Volkswagen had previously agreed to spend up to $US17.5 billion ($A23.6 billion) in the United States to resolve claims by US regulators, owners and dealers and offered to buy back nearly 500,000 polluting vehicles.

VW admitted in September 2015 to installing secret software in hundreds of thousands of US diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that as many as 11 million vehicles could have similar software installed worldwide.

Much of the company's senior management departed following the scandal, including chief executive Martin Winterkorn.