VW facing criminal penalties, reports say


              FILE - In this Thursday, Sept. 24, 2015, file photo, Volkswagen cars for sale are on display on the lot of a VW dealership in Boulder, Colo. On Tuesday, Aug. 2, 2016, major automakers report sales for the month of July. (AP Photo/Brennan Linsley, File)
FILE - In this Thursday, Sept. 24, 2015, file photo, Volkswagen cars for sale are on display on the lot of a VW dealership in Boulder, Colo. On Tuesday, Aug. 2, 2016, major automakers report sales for the month of July. (AP Photo/Brennan Linsley, File)

Volkswagen is expected to face criminal and civil penalties for violating the Clean Air Act by installing software on vehicles that violates environmental standards meant to reduce smog, but prosecutors have yet to decide the specific criminal charges they might bring against the automaker, according to reports.

The Wall Street Journal reported today that the Department of Justice is negotiating a settlement with Volkswagen. The German car maker is expected to face charges and significant financial penalties, people familiar with the matter told the WSJ.

The penalties could exceed the $1.2 billion Toyota had to pay for intentionally concealing unintended acceleration problems, the WSJ reports. The $1.2 billion charge is the largest criminal penalty ever imposed on an American automaker to-date.

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