VW eyes national remediation fund to make up for diesel cheat

March 17, 2016 at 10:24 a.m. | Updated March 17, 2016 at 10:28 a.m.

by Wire Service

FILE - This Sept. 22, 2015, file photo, shows the Volkswagen logo on a car during the Car Show in Frankfurt, Germany. Volkswagen deleted documents and obstructed justice after the U.S. Environmental Protection accused the company of cheating on emissions tests, a former employee alleges in a lawsuit. Daniel Donovan says in a whistleblower case that he was wrongfully fired Dec. 6, 2015, after refusing to participate in the deletions and reporting them to a supervisor. The lawsuit says that the evidence deletion continued for three days after the Sept. 18 allegations from the EPA and despite a hold order from the Justice Department. (AP Photo/Michael Probst, File)
FILE - This Sept. 22, 2015, file photo, shows the Volkswagen logo on a car during the Car Show in Frankfurt, Germany. Volkswagen deleted documents and obstructed justice after the U.S. Environmental Protection accused the company of cheating on emissions tests, a former employee alleges in a lawsuit. Daniel Donovan says in a whistleblower case that he was wrongfully fired Dec. 6, 2015, after refusing to participate in the deletions and reporting them to a supervisor. The lawsuit says that the evidence deletion continued for three days after the Sept. 18 allegations from the EPA and despite a hold order from the Justice Department. (AP Photo/Michael Probst, File)

Volkswagen is in talks with U.S. authorities to establish a national remediation fund and a separate one for California as punishment for pollution from its cars after the automaker cheated on diesel-emissions tests, people familiar with the matter told Bloomberg.

One fund would be administered by the Environmental Protection Agency and used to promote clean transportation throughout the U.S. The other would be run by California to promote zero-emission vehicles in the state, said the people, who asked not to be identified because the talks are private. Negotiations are continuing and many details are in flux, the people said.

A deal would help settle a U.S. Department of Justice civil lawsuit and clear a key obstacle as the German automaker tries to emerge from a scandal affecting 11 million of its vehicles worldwide.

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