In a historic civil settlement, VW will buy back or repair cars sold as "clean" but that in fact polluted above legal levels. The company will also pay nearly $5 billion for environmental reparations.
The agreement addresses "what to do about the 2-liter diesel cars on the road and the environmental consequences resulting from their excess emissions," the Justice Department says.
Speaking with NPR, Matthias Mueller blamed the problem on a misunderstanding of U.S. law and said the company doesn't have an ethics problem. Less than a day later, he asked to clarify those remarks.
Volkswagen has acknowledged that millions of its diesel cars worldwide relied on a ruse to skirt emissions controls. The EPA says the two sides haven't agreed on how to handle a recall.
Volkswagen will be putting projects on hold — including the launch of an all-electric Phaeton sedan — to try to get on solid financial footing as it grapples with an emissions cheating scandal.
The company says vehicle owners who apply to receive a $500 prepaid Visa card, a $500 dealership card and three years of free roadside assistance won't give up their right to sue.