Germany-based engineering firm IAV GmBH will pay a $35 million fine after pleading guilty to one count of conspiracy to defraud the United States for its role in the Volkswagen emissions scandal.
According to reports, the company allegedly worked alongside Volkswagen engineers to develop software to temporarily alter performance of VW’s Gen 1 diesel vehicles. This allowed the vehicles to pass emissions testing. Volkswagen owns a stake in IAV. The company, which has offices in Detroit, is expected to enter an official guilty plea early next year.
IAV began assisting in the creation of the software late in 2006. According to a statement from the U.S. Justice department, IAV knew the purpose of the software by 2008, but continued to work on the project.