IAV GmbH Reaches Plea Agreement with United States Department of Justice

IAV GmbH (“IAV”) announced today that it has reached an agreement with the United States Department of Justice (“DOJ”) to resolve an investigation into the company’s role in Volkswagen AG’s use of defeat devices to evade U.S. diesel emissions standards. Under the terms of the resolution, IAV has agreed to plead guilty to one felony count of conspiracy to violate U.S. law and pay a fine of $35 million. The company has also agreed to the appointment of an independent compliance monitor for a period of two years.

“We take these matters very seriously and see this resolution as an important step forward for our company,” said Kai-Stefan Linnenkohl, President and member of the IAV Management Board. “The misconduct identified does not reflect who we are as a company today. We are committed to a culture of compliance and accountability at IAV and to serving as a reliable partner for our customers and the automotive industry.”

The agreement notes that IAV played a minor role in the offense and that the company has already taken steps to enhance its compliance programs and internal controls.

Linnenkohl said, “We strongly believe that having comprehensive compliance and risk management systems in place will be increasingly important as the automotive industry becomes more fast-paced with new technologies, regulations, and consumer expectations. Our goal at IAV is to ensure we are equipped to respond quickly and with good judgment to industry needs, while fully understanding the regulatory, legal, and ethical implications of evolving technologies and trends.”

The agreement is subject to approval by Judge Sean F. Cox of the U.S. District Court for the Eastern District of Michigan. It does not address IAV’s liability, if any, under the laws and regulations of any jurisdiction outside of the United States. IAV’s U.S. subsidiary, IAV Automotive Engineering, Inc., is not a party to this agreement and was not involved in the violation.

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